Cryptocurrency fraud in Katerini: two active-duty military officers in the dock
Nine defendants are answering charges before an investigating magistrate over a pyramid-scheme network with 10,000 registrations and €8 million. Among them are two active-duty military officers.
Two military officers among nine defendants in cryptocurrency fraud case in Katerini
The nine principal individuals alleged to be involved in the cryptocurrency fraud network set up in Katerini appeared before the investigating magistrate today, according to Dikastiko.gr. Of the seven who had already gone through the judicial system at a previous stage, six were released on condition with financial securities ranging from €15,000 to €20,000 each.
The only person remaining in temporary detention is a 44-year-old who is alleged to have acted as a "group leader"—local administrator—in the Artificial Intelligence Friends Association, through which the organisation operated.
Military officers with leadership roles
Two of the defendants appearing today are alleged to have held leadership positions in the network. These are active-duty military officers: one serves in Pieria and the second in Larissa. The second is considered by the authorities to be the person who travelled abroad and brought into the country both the expertise and the operational model of the network.
In total, the police investigation has resulted in 17 arrests to date, with the two armed forces personnel standing out among the defendants.
Investment "pyramids" and promises of double returns
The criminal organisation is alleged to have operated through an investment platform using the pyramid method. Victims were promised double profits within 50 days, with minimal risk. Basic participation packages started at €800, whilst VIP packages reached €5,000.
In practice, the money from newer members was used to pay off older investors—classic Ponzi logic—artificially maintaining the impression of a profitable investment.
Investigation since July following anonymous reports
The case began to unravel last July, when the Sub-Directorate for Prosecution and Investigation of Crimes in Katerini received two anonymous reports via gov.gr. From there began the police investigation that gradually revealed the scope of the network on a nationwide scale.
The platform attracted approximately 10,000 registrations across Greece, with total capital circulated reaching €8 million. In Katerini alone, 1,842 investors were registered and a circle of €2 million was involved.
Seizures across the country, €295,090 in cash
The Hellenic Police carried out searches in numerous areas—from Pieria and Larissa to Athens, Patras, Crete, Mytilene and other islands. Numerous digital devices were seized, 32 mobile phones, a specialised banknote-counting machine and cash amounting to €295,090.
To date, 18 victims have been identified with direct financial loss of €55,970, whilst this number is expected to increase as the investigation continues.
Source: Dikastiko.gr