French authorities have uncovered a $1.8 million crypto fraud involving a fake real estate deal targeting a wealthy couple.
Authorities have also arrested a mother and her son in connection with the fraud after a year-long investigation.
Modus Operandi
According to the authorities, the suspects stole $1.8 million in cryptocurrency through an elaborate yet fraudulent real estate transaction. The mother and son duo were arrested at a rented property in southern France on June 25. Investigators said they targeted a wealthy couple who had listed a $10 million villa for sale in the spring of 2025.
The fraudsters claimed to represent an Italian billionaire and invited the seller to Milan for further negotiations. They made a substantially higher offer than the listed price but asked the seller to prove they owned sufficient crypto assets to cover the $1.8 million in transaction fees.
The suspects gained access to sensitive wallet information, account details, and private keys during a second meeting in Milan. According to the authorities, they requested access to the cryptocurrency wallet under the guise of verifying assets. Unbeknownst to the victim, the fraudsters used hidden cameras to record sensitive information, including the private keys. Once the private keys were compromised, the fraudsters quickly transferred the crypto assets from the wallet.
Prompt Action
The suspects used false identities and frequently moved across the country to throw authorities off their trail and complicate the investigation. They also have prior criminal records related to fraud. However, they denied all allegations against them during questioning. The suspects are scheduled to appear before the Draguignan Criminal Court on September 1 and will likely be charged with organized fraud and inability to account for the source of funds.
Attacks On Cryptocurrency Holders Rising
While this specific case has been classified as a โrip-offโ scam rather than violent extortion, it highlights the growing risks faced by cryptocurrency holders and how fraudsters are using real estate fraud to target them. Franceโs Interior Ministry has recorded 77 crypto-related cases in 2026, including extortion, kidnapping, and unlawful detentions; this is a substantial increase from 45 recorded in 2025.
French Interior Minister Laurent Nuรฑez called the cases โserious in natureโ but reiterated that emergency security measures implemented over the past year are starting to show results. Nuรฑez added that law enforcement agencies have arrested 200 individuals, while over 724 industry figures have joined Franceโs immediate identity verification platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
