Operation Calypso: The €700M E-Scooter Scam That Shook Europe
A major investigation by the European Public Prosecutor’s Office (EPPO) has exposed how organised criminal networks flooded EU markets with fraudulently imported e-scooters, e-bikes, and other goods from China.
A major investigation by the European Public Prosecutor’s Office (EPPO) has exposed how organised criminal networks flooded EU markets with fraudulently imported e-scooters, e-bikes, and other goods from China. Code-named Operation “Calypso”, the probe revealed a complex scheme that evaded import duties and VAT on a massive scale (European Public Prosecutor’s Office [EPPO], 2025). Coordinated raids across 14 countries led to the arrest of ten suspects and the seizure of €5.8 million in cash alongside 7 133 e-bikes and 3 696 e-scooters. Investigators estimate about €700 million in losses to public finances—the largest such case in recent memory (EPPO, 2025).
A Massive Fraud Scheme Flooding EU Markets
The criminal rings, mainly controlled by Chinese nationals, ran a one-stop illicit import enterprise handling everything from shipping containers out of China to money-laundering the profits (EPPO, 2025). Goods entered the EU through the port of Piraeus in Greece, where they were undervalued or misclassified to dodge customs duties.
To avoid VAT, the perpetrators exploited Customs Procedure 42 (CP42), which allows importers to defer VAT when goods move on to another Member State. Shell companies in Greece imported the goods under CP42, claiming they were destined for firms in Bulgaria, Czechia, or Slovenia—entities that were in fact fake or hijacked. In reality, the merchandise was diverted to clandestine warehouses in France, Italy, Spain, and Poland, then pushed onto the black market for cash (EPPO, 2025).
Since the smugglers paid no VAT or duties, they could sell e-scooters and e-bikes far below legitimate market prices, undermining honest businesses (EUToday, 2025).
Risks Hidden Behind Bargain E-Bikes and E-Scooters
- No warranty or after-sales support. Grey-market goods often carry no valid guarantee because they bypass official channels (Kurz Scribos, 2023).
- Safety and compliance issues. Products may lack EU-required certifications, posing potential safety hazards.
- Unexpected costs. Customs can seize under-declared shipments or add VAT and duty charges on delivery, leaving buyers with surprise bills (European Commission, n.d.).
Buy Smart: Choose Reputable EU Suppliers
Operation Calypso highlights a simple consumer lesson: buy high-value items like e-scooters and e-bikes only from legitimate EU-based retailers that display a valid VAT number and issue a proper invoice. When you purchase from an authorised EU supplier, all taxes are included upfront, consumer-protection laws apply, and you receive full warranty coverage. That peace of mind outweighs any short-term savings from grey-market offers that may ultimately cost much more.
Sources
- European Public Prosecutor’s Office. (2025, June 26). Investigation “Calypso”: EPPO strikes criminal networks flooding EU with fraudulent Chinese imports. Retrieved July 7, 2025, from https://www.eppo.europa.eu/…
- EUToday. (2025, June 26). Operation “Calypso”: EU prosecutors dismantle €700 million fraud scheme involving Chinese imports. Retrieved July 7, 2025.
- European Commission, Taxation and Customs Union. (n.d.). Buying goods online from a non-EU country – consumer advice. Retrieved July 7, 2025.
- Kurz Scribos. (2023). The grey market – risks and countermeasures. Retrieved July 7, 2025.
