This week’s crypto crime roundup highlights the complex, global nature of investigations—and the growing urgency for law enforcement to adapt.
Europol led a major international operation that dismantled Kidflix, a dark web platform using crypto to fund child exploitation. The investigation resulted in arrests, suspect identifications, and key digital evidence being seized.
In the UK, gang members who exploited the war in Ukraine to sell vehicles and launder proceeds through crypto were handed prison sentences.
And in Scotland, police reported a staggering 2,000% rise in crypto-related financial crime since 2019, outlining how they plan to respond.
A clearer picture is emerging of how crypto crime is evolving—and how law enforcement is adapting in real time. Read on for insights from the frontlines of the fight against crypto-enabled financial crime.
Global operation shuts down Kidflix platform
A 38-country-strong, worldwide law enforcement investigation, dubbed Operation Stream, supported by Europol and led by the Bavarian State Police has ended the nefarious activities of Kidflix, an online child sexual exploitation platform.
The operational phase of an investigation which was initiated in 2022 took place over a fortnight in March 2025.
The site started in 2021 and swiftly grew in popularity among pedophile rings. Approximately 91,000 videos were uploaded at an average of 3.5 per hour, for an estimated running time of 6,288 hours in total.
Members paid via cryptocurrencies which they swapped for tokens and could earn further tokens by contributing child sexual abuse material (CSAM).
Kidflix gated select CSAM, incentivizing users to pay for content.
Operation Stream identified 1,393 suspects and made 79 arrests, protecting as many as 39 children from further abuse. Authorities also seized 3,000 electronic devices involved in the case, while Dutch and German police confiscated the server. Estimates are that the site received 1.8 million visitors from April 2022 until March 2025.
Why this matters
It is disturbing that online CSAM exists at all, and according to Europol, it may be both expanding and evolving due to the ‘digital dimension.’ Even more sobering is the fact that payments for such criminal services are made via cryptocurrencies—sometimes structured with token-based incentives that reward contributions to the content.
Crypto and payment platforms remain key targets for abuse. This highlights ongoing gaps in transaction monitoring and the need for stronger safeguards—both from providers and regulators—to prevent exploitation at scale. However, Operation Stream’s success is a testament to the power of international law enforcement cooperation.
Europol, the Bavarian Police, and their partners in this cross-border investigation deserve recognition for rescuing 39 children. This operational approach and its successful outcome should serve as a model for future investigations into similar crimes.
Learn more about this story at Europol.
Gang jailed in UK for crypto laundering that exploited Ukraine War
Two members of a criminal group that exploited the Russia-Ukraine war by selling UK-sourced vehicles to Ukrainians were each sentenced to six-and-a-half years in prison on April 7, 2025. A third member awaits sentencing on May 30.
The group bought vehicles in the UK using cash from illicit activities, then transported and sold them to Ukrainians in need during the conflict—using crypto to launder the proceeds.The profits were deposited into a Ukrainian money service exchange, then converted into cryptocurrency and changed back into cash in the UK.
Investigations by the Metropolitan Police’s Economic Crimes Unit and partners proved that the gang had laundered £6.63 million from August 2022 to June 2023.Ironically, a portion of the laundered funds was managed by a Russian citizen who was convicted of a similar offense in early 2024 and sentenced to five years in prison.
Why this matters
The predatory nature of crypto criminals can never be underestimated. In this incident, they exploited the unfolding tragedy of Russia invading Ukraine to launder their ill-gotten gains via crypto in the stricken country and make further profits from it. This highlights how vigilantly authorities must guard against such ruthless criminality.
UK law enforcement and the Crown Prosecution Service worked together to dismantle the gang and secure convictions. The case shows how coordinated efforts can disrupt crypto-enabled crime and bring serious offenders to justice.
Learn more about this story at Sky News.
Crypto-related financial crime up 2000% since 2019, say Scottish Police
Police Scotland reported a staggering 2,000% surge in cryptocurrency-related crimes since 2019, primarily driven by serious and organized crime groups exploiting digital assets to conceal illegal activity.
Its 2025 annual report does not reveal specific case numbers, but crypto is increasingly linked to fraud and other organized criminal operations throughout Scotland.
Police Scotland does not have a dedicated cryptocurrency crime unit but is enhancing its capabilities beyond cybercrime. It now deploys two tracking and tracing tools to monitor blockchain transactions, aligning with broader UK and global law enforcement practices.
The force also participates in the UK’s national Cryptocurrency Working Group, which focuses on training, strategy, and the development of a framework which includes using expert witnesses in crypto-related prosecutions. A dedicated Cyber and Fraud Command has also been proposed which could improve Scotland’s defenses against cybercrime.
Why this matters
The growth in Scottish crypto-related crime in just five years is staggering and indicates that serious and organized crime groups are increasingly drawn towards cryptocurrencies’ relative pseudo-anonymity to cover their tracks.
The Scottish authorities’ quest for a dedicated cybercrime taskforce is heading in the right direction. An unprecedented 2024 Edinburgh High Court action in which the mastermind of a violent robbery in 2023 had Bitcoin worth £109,601 seized could be the first step.
Learn more about this story at Crypto News.
