Two Greek Servicemen Among Alleged Leaders of $8 Million Crypto Pyramid Scheme
Key Takeaways
- •Police have arrested 17 people in northern Greece over an alleged cryptocurrency pyramid scheme that prosecutors say drew in about $8 million from roughly 10,000 investors.
- •Two Greek servicemen from Pieria and Larissa are among nine suspects accused of leadership roles who were scheduled to give statements before an investigating magistrate.
- •A 44-year-old leader of the Association of Artificial Intelligence Friends in Katerini was remanded in custody, while six other initial suspects were released under restrictive conditions with bail set between €15,000 and €20,000.
- •Participants were asked to invest at least €800, or €5,000 for so-called VIP status, with both tiers promised their money would double in value, and investigators estimate 1,842 members and around €2 million were involved in Katerini alone.
- •The case began in July after two anonymous complaints were filed through the gov.gr portal to the Katerini Sub-Directorate for Crime Investigation.
Two Greek servicemen are among nine suspects accused of holding leadership roles in a cryptocurrency pyramid scheme that allegedly took in about $8 million from roughly 10,000 investors, according to the Athens daily To Vima.
The nine were due to give statements before an investigating magistrate in northern Greece 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, To Vima reported. None of the allegations has been tested in court, and the figures come from police sources rather than from a formal charging document. Statements before an investigating magistrate sit at the of Greece's criminal process: formal charges, further custody decisions, or trial scheduling would only become clear as the case moves forward.
On the paper's account, the recruiting vehicle was a local civic group. A 44-year-old man 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 in the case were released under restrictive conditions, with bail set between €15,000 and €20,000, according to the public broadcaster ERT. Pyramid-style operations rely on a steady flow of new participants, and recruitment through an existing civic association draws on social ties already established within a community.
The two military suspects come from Pieria and Larissa, according to the report. Investigators believe the Larissa serviceman picked up the method from a contact he met while the pair were traveling overseas.
The investment offer followed a familiar shape, according to investigators. Participants were encouraged to put in from €800, while those designated as so-called VIP investors were asked for €5,000, with both tiers promised that their money would double in value. In a pyramid structure, payouts to earlier participants come from the deposits of newer ones rather than from trading gains, so promised returns rest on continued recruitment rather than on market performance. In Katerini alone, investigators estimate the organization signed up 1,842 members and took in around €2 million.
The whole case began in July, when two anonymous complaints were filed through gov.gr, the Greek government's own digital services portal, to officers at the Katerini Sub-Directorate for Crime Investigation.
