Spanish authorities have arrested A.R., known online as “CryptoSpain,” in connection with a massive €260 million Ponzi scheme that defrauded more than 3,000 investors across Europe, the Americas, and Asia. The suspect was taken into custody on November 7, 2025.
The scheme, marketed as the “Madeira Invest Club,” promised investors high returns of 20–50% annually through a mix of cryptocurrencies, gold, luxury yachts, rare whisky, and digital art NFTs. Investigators say the operation, launched in 2023, was a classic Ponzi scheme: payouts to early investors came from funds contributed by new participants rather than legitimate profits.
Spanish authorities revealed that “CryptoSpain” created a network of shell companies and offshore accounts across Portugal, the UK, the U.S., Malaysia, and Hong Kong. Forged documents for nonexistent assets were used to maintain the illusion of wealth.
The arrest resulted from Operation PONEI, a collaborative investigation led by Spain’s National Police and Europol, with support from the FBI, SEC, and law enforcement agencies in Singapore, Malaysia, and Thailand. Authorities traced blockchain transactions and digital communications back to Madrid, where servers displayed fake investment dashboards.
“This is one of the most audacious cross-border crypto frauds we’ve exposed in recent years,” said Europol spokesperson Elena Vasquez.
Victims have shared stories of heavy losses, with one London investor losing €150,000 after attending an exclusive webinar promising insider access to a “yacht-backed crypto fund.” Authorities have frozen related assets, including luxury properties in Lisbon and high-end vehicles in Barcelona. Recovery of funds may return only 20–30% of losses, officials warn.
“CryptoSpain” faces charges of fraud, money laundering, and organized crime in Spain. Extradition requests from Portugal and the U.S. are pending. A court appearance is scheduled this week, and bail is expected to be denied due to flight risk.
Financial watchdogs are urging investors to verify licenses and custodians of investment funds and to be cautious of unsolicited high-return offers. The case underscores the importance of international cooperation in tackling cross-border financial crime.
