Greek Soldiers Among Alleged Leaders of $8M Crypto Pyramid Scheme
In brief
- Nine suspects, including two servicemen accused of leadership roles, were due before an investigating magistrate in northern Greece on Monday.
- Police put the alleged proceeds at about $8 million from around 10,000 investors.
- Entry started at €800, with so-called VIP investors asked for €5,000 on a promise their money would double.
Two Greek servicemen are among nine suspects accused of running a cryptocurrency pyramid scheme that took in about $8 million from roughly 10,000 investors, the Athens daily To Vima reported.
The nine were due to give statements to an investigating magistrate on Monday. Police have arrested 17 people over the alleged organization, which prosecutors say operated as a pyramid scheme and pushed investors into cryptocurrencies through a platform it controlled. None of the allegations has been tested in court, and the figures come from police sources rather than a charging document.
The recruiting vehicle, on the paper's account, was a local civic group. A 44-year-old who led the Association of Artificial Intelligence Friends in Katerini was remanded in custody after the magistrate and prosecutor were unconvinced by his account. Six others from the first group of seven arrested were released under restrictive conditions with bail set between €15,000 and €20,000, according to the public broadcaster ERT.
The two military suspects come from Pieria and Larissa. Investigators believe the Larissa serviceman picked up the method from a contact he met while the pair were travelling overseas.
The offer followed a familiar shape. Investors were encouraged to put in from €800, while those designated VIP were asked for €5,000, with both tiers promised their money would double. In Katerini alone, investigators estimate the organization signed up 1,842 members and took in around €2 million.
The whole case began in July with two anonymous complaints, filed through gov.gr, the Greek government's own digital services portal, to officers at the Katerini Sub-Directorate for Crime Investigation.