Spain’s Civil Guard Arrests Leader of 260M Euro Crypto-Linked Alleged Ponzi Scheme

Spanish authorities have apprehended A.R., the alleged leader of a 260 million-euro ($300 million) international investment scam known as the Madeira Invest Club. The scheme, which began in early 2023, targeted over 3,000 victims by promising guaranteed returns on investments tied to various assets, including cryptocurrency, gold, and luxury goods. However, investigators found no actual investment activity occurred; instead, the scheme operated as a Ponzi model, where earlier investors were paid with funds from new investors. This fraudulent operation utilized a complex network of shell companies and bank accounts across at least ten countries, including Portugal, the U.K., and the U.S. This was part of Operation PONEI, a collaborative investigation involving Europol and multiple international law enforcement agencies.

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