EPPO Calypso Investigation E-Bike Auction France: €1.85M Recovered

• An auction in France on August 25, 2026, generated €1,853,800 from the sale of over 10,000 seized e-bikes and e-scooters.
• The items were confiscated as part of the European Public Prosecutor's Office (EPPO) Calypso investigation into extensive customs duty evasion and VAT fraud.
• The ongoing probe targets criminal networks, primarily controlled by Chinese nationals, involved in importing goods from China to the EU, money laundering, and repatriating profits.
• This fraudulent scheme operated for at least eight years, resulting in estimated losses of €350 million in customs duties and €450 million in VAT.
• Ten suspects were arrested during a multi-country raid in June 2025, leading to the seizure of the auctioned vehicles in France with support from the French National Anti-Fraud Office (ONAF).

This extensive probe underscores the European Public Prosecutor's Office's commitment to safeguarding the European Union's financial interests against sophisticated cross-border criminal enterprises.

On August 25, 2026, an auction held in France successfully sold over 10,000 e-bikes and e-scooters, generating proceeds of €1,853,800. These vehicles were among those seized during the ongoing Calypso investigation led by the European Public Prosecutor's Office (EPPO), a significant probe into large-scale financial crimes impacting the European Union.

While substantial, the funds recovered from this specific e-bike auction in France represent only a fraction of the total financial impact stemming from the broader EPPO Calypso investigation. The probe targets multiple sophisticated criminal networks responsible for orchestrating the entire supply chain of goods imported from China into the EU, encompassing distribution across various Member States and sales directly to end consumers. A core component of their illicit activities involves systematic evasion of customs duties and widespread VAT fraud.

The criminal organizations under scrutiny, predominantly controlled by Chinese nationals, are not only engaged in customs evasion and VAT fraud but are also implicated in extensive money laundering operations, with profits being funneled back to China. This intricate fraudulent mechanism is believed to have been active for at least eight years, causing staggering financial losses to the EU budget.

Estimates indicate that the scheme has resulted in a loss of at least €350 million in customs duties and a further €450 million in VAT. The sheer scale and duration of this operation highlight the sophisticated nature of the networks involved and the significant challenge they pose to the financial integrity of the European Union.

Enforcement actions against these networks commenced with a coordinated raid in late June 2025, spanning four countries and leading to the arrest of ten suspects. During this operation, more than 10,000 e-bikes and e-scooters were confiscated in France, with crucial support from the French National Anti-Fraud Office (ONAF).

The recent public auction of these seized assets was meticulously organized by the French Agency for the Recovery and Management of Seized and Confiscated Assets (AGRASC). The €1,853,800 generated from the France seized e-bike auction proceeds will be held and may ultimately be redistributed, contingent upon a final judgment from the competent courts. It is important to note that all individuals involved in the investigation are presumed innocent until proven guilty in a court of law.

The European Public Prosecutor's Office (EPPO) operates as the independent public prosecution body of the European Union, specifically tasked with investigating, prosecuting, and bringing to justice crimes that harm the financial interests of the EU. The Calypso investigation, with its focus on VAT fraud customs evasion EU, exemplifies the EPPO's critical role in combating cross-border financial crime.

This extensive probe underscores the European Public Prosecutor's Office's commitment to safeguarding the European Union's financial interests against sophisticated cross-border criminal enterprises. The ongoing investigation into these money laundering e-bike networks signals heightened scrutiny by the EPPO on import supply chains from China into the EU, particularly concerning customs duties, VAT compliance, and money laundering. This case serves as a stark reminder for businesses in import/export, logistics, and e-commerce to rigorously review their due diligence processes for suppliers and distributors to mitigate exposure to similar large-scale fraud investigations and potential asset forfeiture.

This investigation signals heightened scrutiny by the EPPO on import supply chains from China into the EU, particularly regarding customs duties, VAT compliance, and money laundering. Lawyers advising clients in import/export, logistics, or e-commerce should review their clients' due diligence processes for suppliers and distributors to mitigate exposure to similar large-scale fraud investigations and potential asset forfeiture.

Source: Original reporting via European Public Prosecutor's Office