Malta implicated in €23 million NFT fraud investigated by Italy

Tista’ taqra bil-
Malti.

Italian authorities are delving into a sophisticated financial fraud involving non-fungible tokens (NFTs) and digital currencies, with 80 individuals under investigation, including 38 financial agents, in connection to the disappearance of €23 million.

The fraudulent scheme, orchestrated by a Financial Technology company based in Treviso, promised clients a 10% return on investments in NFTs and crypto.

Italian investigators, in collaboration with global authorities, are conducting a wide-reaching effort to recover funds, including reaching out to Malta.

NFTs, unique digital files like paintings or music bought through digital currency, were exploited in a fraudulent cycle where promised returns failed to materialize. The company’s three founders, Christian Visentin, Emanuele Giullini, and Mauro Rizzato, are now facing charges of criminal association and fraud and are suspected to have fled to Switzerland and Dubai.

Last summer, when expected returns did not materialize, around 700 formal fraud reports were filed, amounting to €23 million in losses. However, the true extent of the fraud may be much larger, with an estimated 4,000 victims and approximately €300 million invested in the scheme.

Reports suggest that the Maltese authorities, along with those of Switzerland, Lithuania, Bulgaria, Sweden, Spain, Croatia, and the Czech Republic, have received formal requests for judicial assistance.

The Procura di Treviso is coordinating with Interpol and authorities in the UAE, UK, and the US for a comprehensive investigation.

As part of the inquiry, assets valued at €2 million, including luxury cars, have been seized from the accused, with auctions aimed at offsetting judicial expenses.

The company’s management is accused of operating a Ponzi scheme, where NFTs were continually bought and sold at inflated prices, creating fictitious profits that were supposed to be passed on to investors.

However, the company allegedly transferred funds to Lithuania, converted them into digital currencies, and distributed them globally to obfuscate their origin. The scheme collapsed in the summer of 2022, leaving investors with substantial losses. Malta now finds itself implicated in this international financial scandal, prompting heightened scrutiny of its role in the intricate web of financial malfeasance.