$300M Crypto Scheme Shakes Spain
A $300 million cryptocurrency scandal in Spain has political implications, revealing secret ties between the scheme and a far-right political figure.
Arrest and Charges
Spanish authorities arrested Álvaro Romillo Castillo, known as “Cryptospain,” the alleged mastermind behind a crypto pyramid scheme that defrauded over 3,000 investors. Castillo was detained on Thursday under Operation PONEI, led by the Spanish Civil Guard, and denied bail due to being 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 Fraudulent Scheme
The investment club, which started in early 2023, marketed itself as a “private investment group” offering opportunities in real estate, luxury cars, yachts, whiskey, gold, and cryptocurrencies. It promised 20% annual returns and guaranteed buybacks to lure investors.
- Investors were led to believe their funds purchased digital artworks that would be repurchased later at a profit.
- Investigations revealed no genuine business operations behind the club.
- The scheme operated as a classic pyramid, using investments from new participants to pay returns to earlier adopters.
Political Connections
Investigators linked Castillo to financing the campaign of a far-right politician and transferring millions through offshore accounts, highlighting the wider political repercussions of the scam.
“The fake investment club promised 20% annual returns and operated across several countries.”
Authorities warn this case exposes vulnerabilities in cryptocurrency investments tied to political interests.
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