X @BSCN

Fraud Overview - Spanish authorities dismantled a €260 million (~$300 million) Ponzi scheme led by "CryptoSpain" [1] - The scheme, operated through Madeira Invest Club, promised 20% annual returns on crypto, gold, luxury cars, whiskey, and real estate [2] - Funds were allegedly used to purchase digital art for resale, but were actually used to pay earlier investors [2] Investigation and Scope - The investigation, Operation PONEI, was led by Spain's Civil Guard and resulted in the arrest of Álvaro Romillo Castillo [1] - Investigators uncovered shell companies and bank accounts in at least eight countries, including Cyprus and Madeira [2] - Funds were moved through offshore entities and crypto mixing services to conceal their origin [3] - Authorities estimate over 3,000 victims across Spain, Portugal, Italy, Germany, and Latin America were defrauded [3] Financial Impact and Losses - The average loss per investor was €80,000, with some losing over €1 million [4] - Police seized luxury assets, including a Ferrari and a yacht, purchased with stolen funds [4] Legal and Regulatory Actions - Europol assisted in tracing transactions to crypto exchanges in Estonia and Panama [4] - Castillo has been denied bail due to flight risk and faces up to 15 years in prison [4]