Italian Police Dismantle Alleged Mafia-Run Underground Bank
Italian police have dismantled an alleged mafia-run underground bank that operated behind a car rental business near Milan. This operation processed over €110 million in fraudulent invoices and transferred approximately €68 million abroad through traditional banks and cryptocurrency. The investigation resulted in 30 court-ordered restrictions and the seizure of around €21 million in assets, revealing financial connections between Italy’s most powerful criminal organizations.
Details of the Operation
According to ANSA, the car rental business outside Milan allegedly served as a secret bank for some of Italy’s most notorious mafia groups. The Italian financial police uncovered a criminal network responsible for more than €110 million (approximately $128 million) in fraudulent invoices and around €68 million (about $79 million) in international money transfers, some of which involved cryptocurrency.
Announced on October 21, 2026, the operation led to arrests across multiple countries and the seizure of roughly €21 million (around $24 million) in assets. Investigators estimate that the underground banking operation had been running for approximately three years.
Key Figures and Connections
The Italian daily newspaper La Stampa reported that Italy’s Guardia di Finanza identified the alleged headquarters in Pero, near Milan, where prosecutors claim three men—Giuseppe Piscioneri, Paolo Pelaggi, and Luigi Mercadante—directed the operation. The suspects reportedly maintained connections to the ‘Ndrangheta, Camorra, and Foggia mafia organizations, collaborating with Chinese and Albanian associates.
Operation Mechanics
Investigators described the operation as surprisingly organized, complete with spreadsheets tracking transactions, professional cash-counting machines, and couriers transporting large sums of money.
The scheme relied on businesses making payments to shell companies for services that never existed. These payments created false expenses that could be used to reduce tax liabilities, while couriers returned cash to customers after deducting commissions ranging from 2% to 5%.
Funds remaining in company accounts were funneled through European banks before reaching cryptocurrency exchanges and digital wallets controlled by the network. Some transactions involved the stablecoin USDT, a cryptocurrency designed to maintain a value of $1. Authorities also traced proceeds from drug trafficking and online cryptocurrency investment scams.
Consequences and Ongoing Investigation
Investigators allege that some of the proceeds supported imprisoned mafia members and financed weapons purchases. The operation resulted in 16 detention orders and 14 house arrest orders, with actions extending into Spain and Switzerland. More than 350 officers participated in the operation. Additionally, a financial police inspector faces corruption allegations related to a €3,000 payment.
The investigation remains active, and the accusations have yet to be established in court. Behind the facade of the car rental business, prosecutors assert that organized crime had constructed its own financial institution.
