Gardaí have arrested a woman in Dublin suspected of operating a sophisticated cryptocurrency scam and acting as an investment intermediary without the permission of the Central Bank.
The woman, who is aged in her 60s, was arrested on Thursday morning following searches in the south Dublin area.
Her activities had seen her become the target of an investigation by the Garda National Economic Crime Bureau (GNECB) in recent weeks and months.
Gardaí believe that money provided to the woman for the purposes of “an investment” was actually being transferred to Virtual Asset Service Providers (VASPs), and then converted into cryptocurrency.
From here, the assets were moved through the blockchain — a piece of technology akin to a decentralised online ledger that catalogues transactions made across a shared computer network.
In this way, those who use the blockchain can confirm transactions without the need for a central clearing authority, the Central Bank in this case. Often, the funds were then moved out of the country and into overseas accounts.
Under Section 9 of the Investment Intermediaries Act 1995, a registered company or any person cannot act as an investment business firm, or to claim themselves as such, inside or outside the State without authorisation.
A GNECB spokesperson said that, following inquiries and collaboration with banks, its officers were able to identify a person who transferred almost €1m as an “investment”.
Approximately half of this sum was then frozen and returned to the victim in question.
The woman is being detained at Irishtown Garda Station under Section 4 of the Criminal Justice Act 1984.
“Investigations are ongoing,” the spokesperson added.