Greek police say they have broken up an alleged crypto pyramid scheme that took about $9 million from more than 10,000 investors by promising unusually fast returns through an automated trading system.

According to authorities, the group told participants their deposits in USDT or USDC would double within 50 days using an AI-powered algorithm. Police described the operation as unauthorized and said investors were unable to withdraw funds during that period.

Police action and arrests

The investigation led to the arrest of 17 people, including two alleged ringleaders. Police also said several military personnel were among those detained, while another nine suspects were identified in the case file.

The detainees have been referred to an investigating judge for formal prosecution, which marks the next step in the case under the process described by authorities.

How the alleged scheme was presented

Authorities said the operation was run by the Hellenic Artificial Intelligence Team Association, or AT Team Greece. Investigators allege the group marketed what it presented as a low-risk, high-return crypto investment platform built around automated AI trading.

Police said the pitch centered on a promise to double users' money in 50 days if they deposited USDT or USDC. During that lockup period, withdrawals were blocked, according to the account provided by investigators.

Pyramid structure and money flows

Greek authorities said the platform functioned as a pyramid scheme rather than a legitimate investment operation. In their account, money from newer recruits was used to pay earlier participants.

Investigators further alleged that the main proceeds were laundered through offshore banks and cryptocurrency wallets. The total losses cited by police were about $9 million across a victim pool they estimated at more than 10,000 investors.

Nationwide presence and seized evidence

Police said the group built a visible presence across Greece by opening branches and organizing public events and charitable activities, steps that investigators believe were meant to give the enterprise an appearance of legitimacy.

Raids were carried out at five offices and multiple other properties. Authorities said they seized cash as well as a large volume of digital evidence, including mobile phones, tablets, laptops, USB drives, hard drives and other items that may be used in the continuing investigation.

Source: news.bitcoin.com