The crackdown involved roughly 160 searches across 19 countries, including Germany, as authorities moved to map the extent of the fraud.

Prosecutors allege the operation hid the true condition of the phones and generated about €300 million in proceeds, with around €30 million in stolen VAT revenue.

Investigators identified the organization’s leaders as Oleksiy S. and Eugen R., issuing warrants for seven people, including the two alleged leaders.

Logistics showed units shipped from Hong Kong and the UAE to German warehouses, such as one in Krefeld, before they're listed on EU marketplaces.

The case is being probed for customs evasion, trademark infringement, and forming a criminal organization, with OLAF launching proceedings based on insider tips from a whistleblower.

Authorities are pursuing charges of fraud and VAT evasion, with ongoing investigations to identify all involved parties and recover funds.

The EPPO is mapping the full network across Austria, Belgium, Bulgaria, Croatia, Cyprus, Switzerland, Estonia, Finland, Germany, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Spain, and the Netherlands.

A Europe-wide operation targets a multi-country scheme selling online handsets as new but assembled from used parts, with authorities estimating over 1 million devices and more than €300 million in losses to EU consumers.

German authorities, coordinated with the EPPO in Luxembourg and German police and tax agencies, conducted searches and seized assets including a Krefeld warehouse housing numerous devices.

Seven suspects were arrested over the weekend, including two alleged leaders, as part of a cross-border operation triggered by OLAF with coordinated investigations into imports, smuggling, and criminal organization.

Around 1,770 law enforcement and customs officers participated, with arrests in Germany, Austria, and Spain.

Investigations also cover smuggling, trademark infringement, and forming or belonging to a criminal organization.