Last week, the European Public Prosecutor’s Office (EPPO) carried out searches and seizures at companies in Attica and Kastoria as part of an investigation into a major VAT carousel fraud scheme tied to the trade of small electronic goods—and suspected money laundering from criminal activity. According to the EPPO, preliminary estimates indicate at least €46.9 million in losses to Greek and EU public funds due to the fraud.
How Carousel Fraud Works
The case involves so-called ‘carousel fraud’—one of the most sophisticated forms of VAT fraud in the European Union. It exploits the VAT exemption applied to intra-EU cross-border transactions. In this model, goods—often electronics—are cycled repeatedly through a chain of companies across multiple countries, including so-called ‘missing traders’ who vanish without paying VAT. No tax is paid along the chain, and fraudulent VAT refund claims are submitted for amounts that were never actually paid.
A Cross-Border Network
Investigators have identified a network of companies operating in Greece, Cyprus, the Czech Republic, and Bulgaria, allegedly used to facilitate these cross-border electronic goods transactions. The scheme is believed to have operated between 2021 and 2025, causing confirmed losses of at least €46.9 million in unpaid VAT. Authorities are also examining an additional €24.2 million, where evidence suggests either non-payment or inaccurate reporting to tax authorities.
Seizures and Asset Freezes
During the operations, investigators seized large volumes of documents, accounting records, digital data, €99,000 in cash, and three luxury vehicles. They also froze approximately €900,000 worth of cryptocurrency and other digital assets valued at around €4.5 million. Greek authorities described this as the largest-ever digital asset seizure operation conducted in the country to date.
The identification of these assets was made possible through advanced digital forensic analysis techniques, allowing investigators to trace assets scattered across complex digital infrastructures.
Ongoing Investigation
The EPPO’s investigation remains ongoing. In addition to VAT fraud, prosecutors are examining potential money laundering linked to criminal proceeds. To date, no arrests or formal charges have been announced. The operations were conducted by Greece’s Internal Affairs Service of Security Forces, supported by the Digital Forensic Investigation and Analysis Sub-Directorate.