Crypto ‘Red Card’ Trial Kicks off in France Over €28M Scam Involving Soccer Clubs

• Over 1,300 individuals were scammed out of €28 million.
• The “red card” fraudsters targeted almost a dozen professional soccer clubs.
• Scammers posed as representatives of soccer players to redirect salaries to fraudulent bank accounts.

A French trial began on Monday surrounding a major cryptocurrency and diamond investment fraud that swindled millions from investors and soccer clubs.

Crypto and Diamonds Scam

According to local media  reports, roughly €28 million ($30 million) was defrauded from 1,300 individuals in the “red card” case. Proceedings began on Oct. 21 at a conference center in Nancy, France, because a courtroom could not accommodate the 850 victims represented.

The twenty-two defendants, aged 28 to 73, are also accused of opening 199 bank accounts in 19 countries to fund and launder the scheme between 2016 and 2018. One victim gave over  €400,000 ($432,000) to one of the scammer’s “diamond savings plan” websites.

Prosecutors say that the 22 fraudsters are being tried with varying degrees of implication. Three of the defendants remain at large. Twelve are charged with criminal conspiracy, specifically for allowing their names to be used to open fraudulent bank accounts.

Others are accused of “fraud committed in a gang” for building fake websites and ordering and distributing counterfeit diamonds.

An additional six defendants have – so far – pleaded guilty. International warrants have been issued for the three individuals still on the run.

The ‘Red Card’ Case

It’s been dubbed the “red card” case, as at least a dozen soccer clubs were also swindled in the scam. Specifically, firms Sochaux, Angers, and Toulouse were conned out of €60,000 ($65,000). Several other teams, Marseille, Lorient, Rennes, Dijon, Brest, and Nantes, were targeted but didn’t give over any funds.

Individuals in Marseille and Israel masqueraded as agents representing professional soccer players. They then attempted to persuade these football clubs to redirect player salaries to the newly created bank accounts.