Spanish authorities have arrested a man accused of leading a massive international investment scam allegedly worth 260 million euros ($300 million). The scheme promised high returns on a diverse range of assets, including cryptocurrency, gold, and luxury yachts.

The suspect, identified only as A. R. and known online as “CryptoSpain,” reportedly operated the Madeira Invest Club. This private investment group began its activities in early 2023 and quickly attracted attention, according to Spain’s Ministry of Interior.

The scam lured more than 3,000 victims by offering guaranteed returns on contracts linked to digital art, luxury vehicles, whisky, real estate, and cryptocurrencies. The perpetrators promised profits alongside buyback guarantees as part of their pitch. However, authorities revealed that no actual economic investment took place.

Instead, the Madeira Invest Club functioned as a Ponzi scheme. Earlier investors were paid using funds contributed by new participants, creating the illusion of profitability. As the operation grew, the group established a complex network of shell companies and bank accounts across at least 10 countries, including Portugal, the U.K., the U.S., Malaysia, and Hong Kong.

The investigation, dubbed Operation PONEI, involved collaboration between Europol and law enforcement agencies from the U.S., Singapore, Malaysia, Thailand, and other countries. Spanish authorities continue to work with international partners to dismantle the network and bring those responsible to justice.
https://bitcoinethereumnews.com/crypto/spains-civil-guard-arrests-leader-of-260m-euro-crypto-linked-alleged-ponzi-scheme/