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Spanish authorities have arrested the alleged leader of a $300 million crypto pyramid scheme that defrauded more than 3,000 investors. The fake investment club promised 20% annual returns and operated across several countries. Investigators also linked the suspect to the financing of a far-right politician’s campaign and to the transfer of millions through offshore accounts. Sponsored Sponsored CryptoSpain Arrested Over Pyramid Scheme Álvaro Romillo Castillo, known as “Cryptospain,” was detained on Thursday and denied bail. Authorities considered him a flight risk ahead of his Friday court appearance. The arrest took place under Operation PONEI, led by the Spanish Civil Guard. Officials accuse Castillo of running an international network dedicated to fraud and money laundering through the Madeira Invest Club. The club began operating in early 2023. It presented itself as a “private investment group” offering deals in real estate, luxury vehicles, yachts, whiskey, gold, and cryptocurrencies. #OperacionesGC | Detenido el responsable de una #estafa de más de 260 M€, que afecta a más de 3000 personas. ▶️ Bajo el seudónimo de “CryptoSpain” en diferentes redes sociales, dirigía el Madeira Invest Club desde 2023. ▶️ La estafa se centraba en productos tan variados… pic.twitter.com/cJUceavqBA — Guardia Civil (@guardiacivil) November 6, 2025 The scheme lured investors with promises of fixed returns and guaranteed buybacks. Participants believed their money was used to buy digital artworks that the club would later repurchase at a higher price. Investigators later found no real business activity behind the operation. Instead, it functioned as a pyramid scheme, using funds from new investors to pay older ones. Authorities also revealed that the network maintained bank accounts and shell companies in at least eight countries. Sponsored Sponsored The case took a political turn when investigators uncovered potential links between Castillo and a Spanish far-right politician. Far-Right Party Leader Faces Funding…

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Filed under: News - @ November 7, 2025 10:26 pm