10 million euros laundered in cryptocurrencies: 48 investigated throughout Italy

10 million euros laundered in cryptocurrencies: 48 investigated throughout Italy for criminal association

This morning, the Special Currency Police Unit, together with the Economic and Financial Police Unit of the Guardia di Finanza of Florence, at the request of the Public Prosecutor's Office of Florence, is executing an order with which the GIP has ordered the personal precautionary measure against 48 individuals, investigated for criminal association, money laundering and fraudulent evasion of tax payment as well as the preventive seizure aimed at confiscation for approximately 14,5 million euros.

The investigations – coordinated by the Public Prosecutor's Office and the District Anti-Mafia Directorate of Florence – were also developed through the analysis of financial flows, the consultation of databases and the in-depth analysis of reports of suspicious transactions and allowed the identification of 44 companies (mainly attributable to Chinese), active in the wholesale trade of clothing and footwear and operating mainly in Lazio, Campania and Tuscany.

On the basis of the accusatory framework that emerged during the investigations by the Guardia di Finanza - currently in the preliminary investigation phase and subject to subsequent assessments of merit - these companies, some of which were short-lived (so-called "open and close" companies), are said to have accumulated tax debts for which they were found to be the recipients of assessment notices and/or unpaid tax bills for approximately 15 million euros.

The sums subtracted from the tax authorities, equal to approximately 10 million euros, would then have been transferred with bank transfers without economic justification, in favor of four additional Chinese citizens, owners of businesses operating in Florence. The latter, against whom a criminal association has been hypothesized, would have systematically transferred the illicit funds abroad immediately after receiving such sums, hindering the identification of their criminal origin.

Since the substitution of the proceeds of tax evasion would have occurred through the cryptocurrency exchange system and the subsequent transfer of the same to additional virtual wallets ("wallets"), in order to trace the financial flows and the points of conversion between current money and cryptocurrency, the Florence Public Prosecutor's Office has sent European investigation orders and requests for rogatory letters to numerous foreign states (Germany, Lithuania, Slovenia, Estonia, Liechtenstein and Seychelles). Thanks to international judicial cooperation, it was learned that the proceeds of tax evasion would have been first converted into virtual currencies, then transferred to wallets, at additional exchangers in the Seychelles, registered to Chinese people, and, finally, reconverted into current money.

The measures concerned:

– the 4 Chinese entrepreneurs, investigated for criminal association (three recipients of pre-trial detention in prison and one under house arrest), who, in the period 2018-2020, laundered proceeds from tax evasion for approximately 10 million euros;

– a further 44 entrepreneurs (subject to a temporary ban on carrying out entrepreneurial activities), against whom the crime of fraudulent evasion of tax payments has been alleged.

The precautionary measures were issued during the preliminary investigation phase, based on the current evidentiary acquisitions and, pending a final judgment, the presumption of innocence of the accused applies.

48 local searches are also being carried out.

The overall activities of the pg are carried out by over 150 Financiers in the provinces of Florence, Prato, Ancona, Arezzo, Benevento, Bologna, Crotone, Forlì-Cesena, Milan, Modena, Monza-Brianza, Naples, Padua, Reggio Emilia, Teramo, Verona and Vicenza, also with the collaboration of the territorial component of the Corps.