Greek authorities have dismantled an unauthorized $8 million cryptocurrency pyramid scheme, arresting 17 individuals including nine military personnel. Operating under the name "Association of Artificial Intelligence Friends," the scheme allegedly defrauded roughly 10,000 investors by promising to double deposits within 50 days. Two servicemen are accused of holding key leadership roles, having reportedly traveled abroad to acquire the technical know-how to run the fraudulent platform.
How the pyramid scheme operated
- ▪The cryptocurrency scheme required a minimum entry deposit of €800, while investors who deposited at least €5,000 were granted "VIP investor" status.
- ▪The cryptocurrency platform permitted early withdrawals to build investor confidence before suddenly suspending all withdrawals on September 1, 2026, under the pretext of changing its investment strategy.
- ▪The Greek cryptocurrency pyramid scheme operated under the name "Association of Artificial Intelligence Friends" and promised to double investors' capital within 50 days.
- ▪The cryptocurrency platform offered recruitment bonuses to members for bringing new participants into the hierarchical operation to attract further investment.
Involvement of military personnel
- ▪Investigators believe the military mastermind from Larissa traveled abroad with another suspect to acquire the technical know-how to establish the cryptocurrency scheme from an unidentified third party.
- ▪Nine military personnel were among the 17 suspects arrested by Greek police, with two servicemen from Pieria and Larissa accused of holding leadership roles in the scheme.
Scale of the financial fraud
- ▪In the northern Greek city of Katerini alone, the cryptocurrency pyramid scheme signed up 1,842 members who invested an estimated €2 million.
- ▪The cryptocurrency pyramid scheme generated estimated illicit gains of approximately $8 million (or €8 million according to some Greek news outlets) from roughly 10,000 investors.
Arrests and legal proceedings
- ▪A 44-year-old team leader of the Katerini branch of the "Association of Artificial Intelligence Friends" was remanded in custody, while six other arrested suspects were released on bail between €15,000 and €20,000.
- ▪Greek police arrested 17 suspects in connection with an unauthorized cryptocurrency investment pyramid scheme that allegedly defrauded approximately 10,000 participants.
Seizure and movement of funds
- ▪During coordinated searches of offices and homes, Greek police seized €295,090 in cash alongside 32 mobile phones, 28 computers, 15 tablets, and 38 USB storage devices.
- ▪Greek investigators found that the operators transferred illicit proceeds through digital banks abroad or converted the funds into cryptocurrency deposited in digital wallets controlled by the fraudsters.
The police investigation
- ▪The investigation into the cryptocurrency scheme was initiated in July 2026 by the Directorate for Crime Investigation in Katerini following two anonymous complaints submitted via the gov.gr portal.
- ▪During the investigation, Greek police identified 18 victims of the cryptocurrency scheme whose combined deposits reached €55,970.
Debatable claims
- ▪Investors who pursue unrealistic guaranteed returns bear primary responsibility for their financial losses
- ▪The rise of digital banking and cryptocurrency is the primary driver of modern pyramid schemes
- ▪Military personnel should face harsher penalties than civilians for participating in financial fraud
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