A massive cross-border investigation led by the European Public Prosecutor’s Office (EPPO) has uncovered a sprawling criminal network that used fraudulent Chinese imports to evade customs duties and VAT across the European Union—impacting 14 countries, including Denmark.
Codenamed “Calypso,” the operation culminated in 101 coordinated raids across Greece, Spain, France, and Bulgaria on Wednesday 25 June 2025. Ten individuals, including two customs officers, were arrested in connection with the case, which EPPO estimates has caused at least €700 million in damages to the EU and its member states.
According to EPPO, the scheme involved the large-scale import of textiles, shoes, e-bikes, e-scooters, and other goods from China through the port of Piraeus in Greece. The goods were significantly undervalued or misclassified to evade import duties, then routed through sham companies and fake transactions to claim VAT exemptions under Customs Procedure 42 (CP42)—a mechanism intended to simplify cross-border trade within the EU.
Denmark is among the Member States named as having received fictitious sales declarations, where local companies were falsely listed as recipients of the imported goods. In some cases, legitimate Danish companies had their VAT numbers hijacked by the criminal organisations to hide the real destination of the goods, which were often sold for cash on the black market in countries like France, Italy, Poland, Portugal, and Spain.
“These organisations control the entire fraudulent chain—from import to distribution to money laundering,” the EPPO stated. “The proceeds are laundered and returned to China using underground banking systems.”
The network operated from highly controlled warehouse districts, described by investigators as “exclusive communities” accessible only to members of the criminal groups. Transport documents were destroyed upon delivery, erasing traces of the goods’ real path and enabling resale at highly competitive prices due to unpaid VAT and avoided anti-dumping tariffs.
The EPPO was supported by Europol, OLAF, and law enforcement agencies in all involved Member States. In total, investigators seized €5.8 million in cash and digital currencies, 7,133 e-bikes, 3,696 e-scooters, 480 containers for inspection, 27 vehicles, and multiple luxury items and properties.
The Danish authorities have not yet confirmed whether any local arrests or company inspections have taken place. However, Denmark’s inclusion in the list of targeted states suggests local firms may have unknowingly been involved—either as victims of VAT identity theft or as unwitting links in the broader criminal supply chain.
All suspects are presumed innocent until proven guilty in a court of law.
