Georgia arrests alleged cryptocurrency criminals

As part of an international operation in Georgia, law enforcement officers arrested two members of an organised criminal group that investigators say laundered cryptocurrency worth hundreds of millions of US dollars.

At a joint briefing held at Georgia’s Prosecutor General’s Office and attended by representatives of the Prosecutor’s Office, the US Secret Service and Poland’s Central Cybercrime Bureau, Deputy Head of the Investigation Department Beka Kvitsiani said the suspects were foreign nationals. Authorities transferred them to Adjara on 10 June.

According to Kvitsiani, prosecutors in Georgia carried out the large-scale operation with the participation of the US Secret Service, Poland’s Central Cybercrime Bureau, the Łódź Regional Prosecutor’s Office, Georgia’s Interior Ministry Investigation Service and the Ministry of Finance.

During searches, law enforcement officers seized electronic evidence and documents, as well as 173 vehicles, high-value real estate and funds held in bank accounts. Investigators believe the suspects may have used these assets to launder criminal proceeds.

According to prosecutors, the case centres on an organised criminal group operating under the alias AudiA6 since 2022. Investigators say the group provided money-laundering services to cybercriminals and other criminal networks, helping them conceal the origins of illegally obtained cryptocurrency and evade law enforcement scrutiny.

The Prosecutor’s Office said ongoing investigations in several countries have established that members of the group laundered hundreds of millions of dollars between 2022 and 2025.

According to investigators, the group also operated a forum known as Dark2Web, which members used to advertise illegal services and establish contacts between cybercriminals operating in different countries around the world.

Around 100 law enforcement officers from Georgia, Poland and the United States took part in the operation, which received support from Eurojust and Europol.

Georgia’s Prosecutor’s Office thanked its international and domestic partners for their cooperation in the operation and said that combating transnational crime remains one of its key priorities.

Georgia arrests alleged cryptocurrency criminals

Stablecoins and the Fall of Legacy Payments

For years, the stablecoin market has been viewed through the lens of issuance. The most visible winners have been the companies minting the assets, holding reserves, and benefiting from interest income. But Rob Hadick, General Partner at Dragonfly, believes that view is too narrow for where the market is heading.

In Hadick’s view, stablecoins do not simply improve the existing payment system. They compress much of it.

“ Stablecoins collapse the legacy payment infrastructure and reduce the dependency on intermediaries,” Hadick said. “When you’re a stablecoin native, everything is just a book transfer.”

That shift changes where value accrues. In the traditional payments system, value was spread across banks, card networks, processors, settlement layers, compliance vendors, and middleware providers. Stablecoins make many of those roles less necessary, or at least less defensible.

The result, Hadick argues, is an inversion of the 2010s fintech playbook. During that era, major companies were built by creating connections between software startups and legacy banking payment rails. In the stablecoin era, the opportunity is not simply connecting to those legacy banking payment rails. It is replacing them.

That means in the future, the most valuable businesses may sit at the edges of the system: the companies that own customer distribution, merchant relationships, compliance workflows, banking access, and regulatory infrastructure.

From Reserve Yield to Payments

Within the stablecoin vertical of crypto, stablecoin issuers have been the clearest winners so far. Tether and Circle built large networks, accumulated liquidity, and benefited from high interest rates on reserves, which they haven’t had to pass on to users. That model has proven powerful, especially while rates remain elevated.

But Hadick does not expect reserve yield alone to define the next stage of the market. “Going forward, both have started investing heavily in moving from asset management models to payment models,” he said.

That transition is already visible. Hadick pointed to Tether’s investments in companies and ecosystems such as Whop, Transfi, Rumble, and Plasma, while Circle has launched the Circle Payments Network and Arc. These moves suggest that the largest issuers understand the limits of being purely reserve-backed asset managers. In other words, issuance was the first business model, but it will not be the final one.

The Full Stack Starts to Collapse

One of the largest open questions is what the winning stablecoin companies will actually look like. Will they resemble banks, software platforms, payment networks, protocols, or something else entirely?

Hadick answers that today’s market contains all of the above. But he believes stablecoins create room for a new kind of company that blends several financial functions into one.

Imagine a company issuing its own stablecoin, serving users directly, handling merchant settlement, and performing identity, fraud, and compliance checks on an open ledger. In that world, the need for separate issuing banks, merchant banks, card networks, clearing systems, and settlement intermediaries begins to shrink.

“You don’t need both an issuing and merchant bank,” Hadick said. “You don’t need the card network if the merchant and consumer are already known to the provider. You don’t need the network to facilitate clearing and settlement.”

For Hadick, the winners will not be simple network aggregators sitting in the middle. They will be companies that control the last mile, solve compliance problems, face customers directly, and take real operational responsibility.

Where Retail Investors Can Partake

Hadick remains strongly bullish on stablecoin growth. “ Stablecoins are here to stay,” he said. “I think they’re going to grow tenfold.”

He pointed to an estimate from McKinsey that stablecoins account for roughly 3% of cross-border payments, up from almost nothing a year earlier. Hadick expects that share to continue rising sharply.

As for retail investors, Hadick believes the investment map is not just about who issues the token; it is about who owns the flow.

Overfunded Middleware and Crowded Consumer Fintech

Not every part of the stablecoin market looks equally attractive. Hadick is particularly skeptical of aggregated API (application programming interface) platforms that simply wrap or connect third-party services without taking on compliance or operational risk themselves. These companies may be able to charge high fees today, but Hadick believes their margins are vulnerable.

“They call themselves ‘Plaid for stablecoins,’ forgetting that blockchains already solve many of the original pain points Plaid solved for traditional banking,” he said.

The critique is straightforward. If a company is only aggregating APIs and not owning the customer, compliance layer, liquidity, or operational burden, it may be squeezed as the market matures. To remain valuable, these platforms may need to move closer to the end customer or take on more of the stack.

Hadick also sees risk in consumer fintech. Stablecoin infrastructure makes it easier than ever to launch a neobank or payment app. But that accessibility creates a crowded field.

Established brands such as Nubank, Robinhood, and Revolut can add stablecoin features to existing user bases. That makes it difficult for new consumer startups to stand out unless they offer a clear wedge, strong distribution, or a differentiated regional use case.

Hadick expects failure rates in this category to be high. Still, he does not dismiss the sector entirely. A small number of consumer fintech winners could become large global businesses if they solve real customer problems and use stablecoins as infrastructure rather than branding.

The biggest winners so far may not be the final winners. As the stack collapses, the real value will move toward the companies that own users, flows, compliance, and trust.

The Delaware House of Representatives has passed a bill that would prohibit the operation of cryptocurrency ATMs across the state, citing growing concerns over fraud and consumer protection. The legislation, now headed to the state Senate for consideration, would require all existing crypto ATMs to be shut down and removed within 90 days of enactment.

What the Bill Proposes

House Bill 123, as reported by Decrypt, targets the proliferation of cryptocurrency kiosks that have become common in convenience stores, gas stations, and other retail locations. Lawmakers argue that these machines are increasingly used to facilitate scams, particularly targeting elderly and vulnerable residents who may not fully understand the technology. The bill would make it illegal to operate, maintain, or permit the installation of a cryptocurrency ATM anywhere in Delaware.

Why This Matters for Consumers

Cryptocurrency ATMs allow users to buy or sell digital currencies like Bitcoin using cash or debit cards. While legitimate users appreciate the convenience, regulators have flagged them as high-risk for money laundering and fraud. The Federal Trade Commission has reported a surge in scams where victims are directed to deposit cash into these machines under false pretenses. Delaware’s proposed ban reflects a broader state-level push to rein in unregulated crypto financial services.

Similar Actions in Other States

Delaware is not alone in taking a hard line. Indiana, Tennessee, and Minnesota have previously enacted comparable restrictions or outright bans on crypto ATMs. These measures often include licensing requirements, transaction limits, and mandatory disclosures. The trend signals a growing skepticism among state legislators about the consumer safety risks posed by unmonitored crypto kiosks.

What Happens Next

The bill now moves to the Delaware State Senate, where it will undergo committee review and potential amendments. If passed, Delaware would join a small but growing list of states with explicit bans. Industry advocates argue that such laws could stifle innovation and push transactions underground, while consumer protection groups praise the move as necessary to prevent financial harm.

Conclusion

Delaware’s legislative action highlights the ongoing tension between cryptocurrency adoption and consumer safety. As the bill advances, stakeholders on both sides will be watching closely. For now, the message from Dover is clear: protecting residents from crypto-related fraud is a priority that may outweigh the benefits of unregulated ATM access.

FAQs

Q1: What is a cryptocurrency ATM?
A cryptocurrency ATM is a kiosk that allows users to buy or sell digital currencies like Bitcoin using cash, debit cards, or other payment methods. Unlike traditional ATMs, they are not connected to a bank account.

Q2: Why does Delaware want to ban crypto ATMs?
Lawmakers cite a rise in fraud cases, especially among seniors, where scammers trick victims into depositing cash into these machines. The bill aims to eliminate this vector for financial exploitation.

Q3: What happens to existing crypto ATMs in Delaware if the bill becomes law?
Operators would have 90 days to shut down and remove all machines. Failure to comply could result in penalties. The timeline is designed to give businesses a reasonable window to adjust.