Investigation Midas: Five arrests in Cyprus, Germany and Italy in probe into €114 million VAT fraud

(Luxembourg, 16 October 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Munich (Germany), five suspects were arrested this week in an investigation into a €114 million VAT fraud linked to investigation Midas. Three were arrested in Cyprus, one in Germany and one in Italy. Searches and seizures were also carried out in Cyprus, Greece and Italy.

The criminal organisation under investigation is suspected of operating a cross-border VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax. They sold smartphones via companies and missing traders based in Germany, Albania and Sweden, and created an estimated tax loss of €80 million in Sweden and of €34 million in Germany. 

The arrested suspects are believed to have set up and controlled the VAT fraud scheme. With the support of numerous national authorities from Cyprus, Germany, Greece and Italy, 12 searches were carried out in the premises of the suspects and companies under investigation and assets of up to €80 000 have been frozen on bank accounts, cars and real estate were seized in Cyprus, Greece and Italy.

All persons concerned are presumed to be innocent until proven guilty in the competent German courts of law.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.

List of partners and national authorities most involved:

• Germany: Tax office Bielefeld 
• Cyprus: Tax Department (Τμήμα Φορολογίας), Cyprus Police: The Office for Executing European Investigation Orders & Letters of Requests (Γραφείο Εκτέλεσης Ευρωπαϊκών Εντολών έρευνας και Αιτημάτων Δικαστικής Συνδρομής) and The Cybercrime Division – Digital Forensic Lab (Ηλεκτρονικό έγκλημα- Δικανικό Εργαστήριο Ηλεκτρονικών Δεδομένων), The Financial Intelligence Unit (MOKAS) (Μονάδα Χρηματοοικονομικών Πληροφοριών)
• Greece: Subdivision of Digital Forensics Research and Analysis/ (Υποδιεύθυνση ψηφιακής εγκληματολογικής έρευνας και ανάλυσης), Division against Organised Crime-Financial Police Division (Διεύθυνση Αντιμετώπισης Οργανωμένου Εγκλήματος-Υποδιεύθυνση Δίωξης Οικονομικών Εγκλημάτων) 
• Italy: Italian Financial Police (Guardia di Finanza Compagnia di Desenzano del Garda)