A man has been arrested by the Spanish Civil Guard, suspected of leading a Ponzi scheme involving cryptocurrencies and luxury assets, with estimated losses of around 260 million euros and more than 3,000 victims.
The case involved a project called “Madeira Invest Club,” which promised guaranteed returns on Non-Fungible Token, luxury cars, whiskey, real estate, and cryptocurrencies. An international investigation uncovered a network of shell companies and bank accounts spanning at least 10 countries.
- Arrest of suspect related to Ponzi scheme worth about 260 million euros with more than 3,000 victims.
- The “Madeira Invest Club” model promises guaranteed returns, diversification with Non-Fungible Token, luxury cars, whiskey, real estate and cryptocurrencies.
- The investigation was international in nature, uncovering a network of shell companies and accounts in at least 10 countries.
Summary of the case
A suspect has been arrested by the Spanish Civil Guard, accused of running an international Ponzi scheme involving cryptocurrencies and various other assets, with estimated losses of around 260 million euros and more than 3,000 victims.
The investigation identified the operation as “Madeira Invest Club,” which lured participants with promises of fixed returns. Internationally coordinated authorities traced shell companies and bank accounts spread across several countries to clarify the flow of money.
How the model works
The model promises guaranteed returns, using products such as digital artworks (Non-Fungible Token), luxury cars, whiskey, real estate and cryptocurrencies as bait to attract investment.
This is a Ponzi scheme: new investors' money is used to pay profits to old ones, while the real profits do not come from sustainable business operations. The product diversity adds false credibility and expands the scope of the scam to many markets.
Scope of investigation and legal consequences
The investigation, which involved a number of international law enforcement agencies, uncovered a network of shell companies and bank accounts spanning at least 10 countries.
The alleged conduct could lead to criminal charges of fraud, money laundering and breach of international financial regulations. Asset recovery and compensation to victims will depend on the outcome of money tracing and cross-border cooperation between agencies.
What crime is the suspect charged with?
The suspect, accused of running a Ponzi scheme, could face charges of fraud, money laundering and other financial crimes depending on the evidence and laws of each country.
How are victims lured?
Victims are lured by promises of guaranteed returns and attractive investments like Non-Fungible Token, luxury cars, whiskey, real estate, and cryptocurrencies, accompanied by fake certificates and images that create trust.
How many victims and how much financial damage?
There are estimated to be more than 3,000 victims and around 260 million euros in damage, according to initial investigation information.
What should I do if I am a victim?
Victims should contact local law enforcement, retain transaction records, and cooperate in providing information to assist in tracing funds and seeking restitution.
