Suspected leader of international cryptocurrency pyramid scheme arrested in Spain
Date: 2025-11-10 Author: Henry Casey Categories: IN WORLD
The Spanish Civil Guard arrested a Spanish citizen, known by the pseudonym "CryptoSpain," on charges of leading a transnational organization engaged in money laundering and investment solicitation under the guise of an investment club. Investors allege that the scheme caused losses exceeding €260 million, with over 3,000 victims.
The investigation reveals that the structure operated like a classic Ponzi scheme. Madeira Invest Club began operations in early 2023, presenting itself as a closed community for private investment. Potential clients were offered investments in cryptocurrencies, gold, real estate, collectible spirits, yachts, watches, and luxury cars. The company promised stable returns and the ability to buy back assets at a predetermined price.
To lend legitimacy to the activity, participants were provided with contracts framed as purchases of digital art objects. However, investigators established that no actual investment activity took place. Payments to early participants were provided solely through new deposits—a classic Ponzi scheme model.
To conceal his tracks and the movement of capital, the suspect created a network of companies and bank accounts in more than ten countries. These include Spain, Portugal, the United Kingdom, Albania, the United States, Malaysia, Belgium, Thailand, Hong Kong, and the Dominican Republic. Financial flows passed through these jurisdictions, significantly complicating the investigation.
According to Guardia Civil representatives, the arrest was the result of several months of international law enforcement cooperation. Investigators analyzed financial reports, cryptocurrency transactions, and the movement of funds through bank accounts. The resulting data confirmed a large-scale fraud scheme and the involvement of dozens of intermediaries who helped disguise the origin of the funds.
The accused is currently in custody, and his assets, including real estate and cars, have been seized. He will soon be formally charged with fraud, money laundering, and creating a criminal organization.
This case has become one of the largest financial investigations related to cryptocurrency in Spain in recent years. Spanish authorities previously reported another similar scam, in which losses were estimated at €460 million. Law enforcement officials emphasize that such cases demonstrate the growing risks in the crypto investment market and the need for increased oversight of such "investment clubs."
