Crypto Probe Puts Portugal’s Film Tax Incentives at Risk

A swirl of intrigue surrounds Portugal’s film scene after prosecutors confirmed that the Lisbon-based outfit funding Kevin Spacey’s new science-fiction adventure is under formal scrutiny for money laundering. Investigators suspect that millions of euros moved through Portuguese banks may be tied to a sprawling cryptocurrency network led by a Russian entrepreneur already charged in the United States. What began as a glamorous movie deal has spiralled into an emblematic test of Portugal’s resolve to police the flow of opaque digital wealth.

At a glanceFrom the outside, the project looked like a straightforward comeback vehicle for Kevin Spacey. Yet the company paying the bills, Elledgy Media, was set up in Lisbon with a token €500 and is run by Ukrainian businesswoman Elvira Paterson, who acknowledges that more than $4 M passed through her books after meeting Vladimir Okhotnikov, a Russian tech promoter with a trail of alleged crypto fraud. Portugal’s Department of Criminal Investigation and Prosecution (DCIAP – Departamento Central de Investigação e Ação Penal, commonly shortened to DIAP in Lisbon) opened a case in mid-November after local banks filed alerts about sudden multi-million-euro transfers and unexplained cash lodgements.

What investigators say happened in LisbonFinancial-crime specialists at the DCIAP have been combing through roughly €4.8 M that landed in an Elledgy account at BCP, along with close to €50 000 in physical cash, all within thirteen months. Separately, Paterson poured €300 000 in banknotes into a personal account at Novobanco and received three wire payments worth €143 000. She told compliance officers the money was a family gift to help with a mortgage in Odivelas, a Lisbon suburb, but investigators believe the pattern matches the layering stage of classic branqueamento de capitais. Compliance staff noted that many incoming transfers originated from offshore exchanges linked to stablecoins, making them hard to trace back to ultimate owners. Court documents seen by Expresso partner journalists indicate that prosecutors are assessing whether Paterson functioned as an intermediary for Okhotnikov’s online ventures, which global regulators separate into Forsage, Meta Force and, most recently, Holiverse.

How a sci-fi blockbuster became a crypto billboardThe film, now marketed as “Holiguards Saga: The Portal of Force”, sits at the heart of a multimedia pitch designed to lure fresh investors into Okhotnikov’s expanding Web3 empire. According to leaked production memos, the storyline links directly to gaming tokens and NFT characters already on sale. Industry insiders say the business model borrows from the Marvel playbook, but instead of box-office revenue feeding sequels, the goal is to nudge viewers toward buying pieces of the broader Holiverse ecosystem. Analysts note that Spacey, hired purely as an actor, has not been accused of wrongdoing; nevertheless, the Portuguese probe could chill private-equity support for niche productions that rely on crypto windfalls. A still-scheduled gala premiere in Lisbon on 20 December is expected to proceed unless prosecutors freeze the company’s accounts beforehand.

Money trails entering Portuguese banksPortugal’s appeal to international producers rests on generous tax rebates and comparatively low production costs. Yet those same attributes, combined with a modern banking sector, can attract foreign capital seeking discreet passage into the eurozone. Central bank data show that suspicious-transaction reports tripled nationwide between 2019 and 2024, with cryptocurrency flagged as a factor in nearly 40 % of new cases. Elledgy’s pattern—rapid transfers, minimal corporate history, large cash-desk deposits—aligns with red-flag indicators circulated to banks under the 2017 Anti-Money-Laundering Act. A senior compliance officer unaffiliated with the case told this newspaper that the film project “looked tailor-made to wrap speculative digital gains in the prestige of a Hollywood production”. The officer added that once capital sits inside a Portuguese account for several months, it can be re-exported as apparently clean dividend income.

Wider picture: Portugal’s fight against dirty moneyLaw-enforcement sources say the Entertainment sector has not previously featured in headline investigations, but the Elledgy affair underscores how Portugal now occupies a frontline role in Europe’s battle to corral illicit crypto profits. The DCIAP and Bank of Portugal have doubled staffing in their financial-intelligence units, while lawmakers debate stricter disclosure rules for digital-asset exchanges operating on Portuguese soil. Earlier this year, the European Securities and Markets Authority warned that the repeated rebranding of ventures such as Meta Force and Holiverse was a hallmark of cross-border pyramid schemes. With pressure mounting, parliamentary committees are asking whether public film-incentive funds should include enhanced vetting of private co-producers to shield Portugal’s cultural portfolio from reputational harm.

What comes next for the film—and for PortugalInvestigators must now decide whether to seek an asset freeze or allow production to continue under close supervision. Should the DCIAP move to indict, Portugal’s courts would likely coordinate with U.S. prosecutors already pursuing Vladimir Okhotnikov. Industry observers caution that an abrupt halt could push the production to relocate, costing Portuguese crews jobs and the country’s tourism sector coveted exposure. On the other hand, allowing filming to proceed unchecked risks turning Portugal into a safe harbour for suspect crypto cash. Either way, the outcome will send a clear message about how far the country is prepared to go to defend both its creative economy and its reputation as a trustworthy member of the eurozone financial system.