The European Public Prosecutor's Office (EPPO) has carried out extensive searches and seizures in the Greek regions of Attica and Kastoria as part of an investigation into an alleged VAT carousel fraud scheme linked to the trade of small electronic devices and suspected money laundering.
According to EPPO, the investigation, which began about a year ago, also extends to Cyprus, where companies connected to the case have been identified alongside entities established in Bulgaria, the Czech Republic and Greece.
The companies are alleged to have formed part of a complex cross-border trading network used to commit VAT fraud through the movement of electronic goods across European Union member states.
Alleged carousel scheme
EPPO said the investigation has uncovered a sophisticated corporate structure used to trade electronic products within the EU.
According to investigators, between 2021 and 2025 the suspects allegedly relied on a chain of so-called "missing trader" companies, created to evade VAT obligations.
Under the scheme, products were allegedly traded in Greece and other EU countries without the payment of the applicable VAT, or in order to obtain unlawful VAT refunds on taxes that had never been paid.
EPPO estimates that the alleged fraud caused losses of at least €46.9 million to the budgets of Greece and the European Union through unpaid VAT.
Investigators have also identified indications that an additional €24.2 million in VAT may either have gone unpaid or been incorrectly declared.
Raids and seizures
The searches were carried out at company premises under investigation as well as at the homes of their directors and managers.
The operation involved Greece's Internal Affairs Service, which is conducting the criminal investigation, with support from specialist digital forensics units.
Authorities seized:
- Large quantities of documents and accounting records
- Digital evidence
- €99,000 in cash
- Three luxury vehicles
Record cryptocurrency freeze
Investigators also froze:
- Cryptocurrencies worth approximately €900,000
- Additional digital assets worth around €4.5 million
The total value of the frozen digital assets amounts to roughly €5.4 million.
According to the Greek authorities, this represents the largest seizure of digital assets ever carried out at national level, following specialised digital forensic analysis and targeted investigations that enabled investigators to trace the assets despite complex technological obstacles.
Investigation continues
The investigation remains ongoing and is being conducted in cooperation with the relevant national authorities.
EPPO stressed that all individuals involved are presumed innocent unless and until proven guilty by the competent courts.
Source: CNA
