$300M Crypto Scheme Shakes Spain
A $300 million crypto scandal in Spain has erupted into political controversy, revealing connections between the scheme and a far-right political leader. Spanish authorities have arrested Álvaro Romillo Castillo, known as “Cryptospain,” the alleged mastermind behind the fraud.
Details of the Fraud
The scheme defrauded over 3,000 investors by promoting a fake investment club, the Madeira Invest Club, which promised 20% annual returns. Operating since early 2023 across multiple countries, the club claimed to offer exclusive deals in real estate, luxury vehicles, yachts, whiskey, gold, and cryptocurrencies.
“The club presented itself as a ‘private investment group’ offering fixed returns and guaranteed buybacks.”
Investors believed their money was used to buy digital artworks, which the club would repurchase at a higher price. However, investigators discovered no genuine business activities behind the operation. Instead, it was a classic pyramid scheme, using funds from new investors to pay older ones.
Political Connections and Legal Action
- The suspect is linked to financing the campaign of a far-right politician.
- He is also implicated in transferring millions via offshore accounts.
- Authorities arrested Castillo under Operation PONEI, led by the Spanish Civil Guard.
- He was detained on Thursday and denied bail, considered a flight risk before his court hearing on Friday.
“Officials accuse Castillo of running an international network dedicated to fraud and money laundering through the Madeira Invest Club.”
The case highlights the dangers of fraudulent crypto investment schemes and their potential entanglement with political financing.
Summary: A major crypto pyramid scheme in Spain involving $300 million and political ties was dismantled by authorities, exposing widespread fraud and money laundering under the guise of exclusive investment deals.