TLDR
- The Madeira Invest Club lured 3,000+ investors with false luxury asset and crypto investment promises.
- Operated via shell firms across 10+ nations, including the UK, US, Malaysia, Portugal, and Hong Kong.
- No real investments existed; returns to old investors came from new members, a classic Ponzi structure.
- Europol and agencies in the U.S., Asia, and Europe joined forces in Operation PONEI to expose the fraud.
- Authorities seized assets as probe continues with more suspects linked to the scheme’s global operations
Spanish law enforcement has arrested a man accused of orchestrating a massive international investment fraud valued at €260 million. The suspect, identified as A.R. and known online by the alias “CryptoSpain,” is alleged to have led the Madeira Invest Club, a scheme that drew in over 3,000 investors with the promise of high returns from luxury asset contracts.
International Network Behind the Scheme
According to Spain’s Ministry of Interior, the operation was run through a web of shell companies and bank accounts across at least 10 countries. These included the United Kingdom, Portugal, the United States, Malaysia, and Hong Kong. Investigators said the club claimed to invest in a wide range of assets, including cryptocurrency, luxury cars, real estate, and digital art.
Europol, along with law enforcement from the U.S., Singapore, Thailand, and Malaysia, coordinated in the investigation. The joint effort, named Operation PONEI, uncovered that the funds were not directed into legitimate investment vehicles.
Promises of Returns With No Real Investment Activity
The Madeira Invest Club, which began operations in early 2023, marketed itself as a private investment platform. It attracted clients by offering contracts that guaranteed returns and buyback protections. These offers were tied to high-end commodities like gold, luxury yachts, whisky, and cryptocurrencies.
However, investigators found that no actual investments were made. Authorities stated that earlier investors were paid using funds from new members, which fit the typical structure of a Ponzi scheme. No underlying economic activity supported the returns that were promised.
Arrest Made After Coordinated Global Effort
The arrest of A.R. followed months of surveillance and international cooperation. The suspect allegedly managed a financial trail that was deliberately obscured across multiple jurisdictions to avoid detection. Authorities reported that this level of complexity significantly delayed the uncovering of the full scheme.
Law enforcement also seized assets and identified financial flows connected to the fraud during the investigation. The probe remains active, with additional suspects possibly involved in the management and expansion of the operation.
The post Spanish Authorities Dismantle Alleged €260M Ponzi Scheme appeared first on Blockonomi.
Source: https://blockonomi.com/spanish-authorities-dismantle-alleged-e260m-ponzi-scheme/
