$30m ‘red card’ trial begins in France

This week, a major crypto fraud case involving over 28 million euros ($30 million) in stolen funds was opened in Nancy, France. The trial is expected to last a month.

More than 20 defendants are involved in a scheme targeting football clubs and individual investors, according to AFP and local reports.

Much of the case focuses on fraudulent investments in diamonds and cryptocurrency, involving leading football clubs such as Sochaux, Angers and Toulouse. The hearing, which had to be moved to the conference center due to the large number of plaintiffs, was called a “red card” due to the intervention of football clubs.

Details of crypto scam

According to reports, between 2016 and 2018, the defendant allegedly ran a crypto fraud operation using fake websites and promises of high returns to lure more than 1,300 people.

Some victims invested large portions of their savings; one person reportedly lost €400,000 to a so-called “diamond savings scheme”.

The scam has also spread to football clubs, with fraudsters posing as agents representing players and persuading the clubs to send wages to new accounts controlled by criminals.

In total, the clubs were defrauded of around 60,000 euros ($64,800), according to AFP.

Approximately 850 victims are represented in the hearings, which are expected to last four weeks. The fraudsters are accused of complicating efforts to recover the money by opening 199 bank accounts in 19 countries to launder the stolen funds.

So far the authorities have recovered €2.8 million, which could be used as compensation for some victims.

Prosecutors allege the defendants are part of an organized network operating out of Israel that targets elderly and vulnerable individuals.

The charges include criminal conspiracy and fraud committed within a gang; Some defendants were accused of creating fake websites, while others helped funnel stolen funds through various accounts.