The Civil Guard dismantles the 'Madeira Invest Club', a Ponzi scheme that deceived thousands of people with crypto

Spain's Civil Guard has uncovered the 'Madeira Invest Club', a €260 million Ponzi scheme that used crypto, art and luxury as a front for traditional fraud.

The arrest of AR, known on social media as “CryptoSpain”The operation by the Spanish Civil Guard marks the collapse of an operation that, according to figures from the Ministry of the Interior, was a failure. more than 260 million euros to some 3.000 peopleThe investigation, dubbed Operation PONEI, has exposed the internal workings of the 'Madeira Invest Club', a network that had been operating since the beginning of 2023. 

Beyond the numbers, the case exposes how classic deception structures adapt and use the narrative of digital assets as one of their many lures.

Madeira Invest Club: The trap behind the private investment club

Spain's Interior Ministry revealed that Madeira Invest Club presented itself as an exclusive "private investment club" with a diverse and attractive catalog. It promised its members access to high-level opportunities, ranging from From real estate and luxury vehicles to collectibles such as gold, whiskey, and yachtsIn that portfolio of exclusive products, Cryptocurrencies appeared as another option, introduced as a modern asset among other more tangible ones.

According to official investigationThe offer for investors had a double hook: fixed returns supposedly guaranteed and a buyback clause which guaranteed they would get their money back. This carefully crafted pitch sought to minimize any doubts about the risks involved, making the offer seem almost irresistible.

However, the work of the Civil Guard's Central Operational Unit (UCO) revealed the true nature of the operation. Behind that facade of exclusivity and opportunity, there was no real economic activity linked to the investments offered. The funds raised were not used to develop businesses or generate wealth in the supposed markets. In reality, the operational structure It functioned like a classic pyramid schemeThe money contributed by new investors was used to pay the supposed profits to previous participants. This structure created a false illusion of profitabilitywhich only lasted as long as a steady flow of fresh capital arrived. When the base of new investors began to dry up, the scheme inevitably collapsed.

Impossible promises in disguise, which attracted thousands

To formalize capital contributions, the organization used a particular method. According to the investigation, the investors They signed contracts for the sale of digital works of art.The club committed through this contract to repurchase these works within a specified timeframe, adding pre-established profits. This contractual mechanism, focused on digital art, served as a legal vehicle to channel money into the scheme, regardless of whether the investor believed they were investing in real estate, gold, or cryptocurrencies.

This choice of digital art as a contractual tool demonstrates operational sophistication. It allowed the organization to standardize fundraising under a single, seemingly legal cover, simplifying the management of thousands of victims lured by various promises. The structure focused on raising and moving capital, not on asset management. Police reports indicate that the corporate and banking network created to move the funds was complex and spanned multiple jurisdictions.

Furthermore, the use of cryptocurrencies in the Madeira Invest Club's discourse was not the core of the scam, but rather part of the scenery. The fraud lay not in the technology of digital assets, but in the promise of impossible returns, a central feature of any Ponzi scheme. 

The mention of "crypto" attracted investors interested in financial innovation, while the mention of "gold" or "whiskey" appealed to more conservative investors. In this way, the group diversified its marketing strategy to expand its network of potential victims.

A global fraud of 260 million euros

The Civil Guard identifies AR as the leader of the criminal organization, which had expanded internationally. According to the investigation, the financial structure designed to sustain the fraud and launder the proceeds was transnational. 

Authorities traced a network of shell companies and bank accounts spread across at least ten countries, including Spain, Portugal, United Kingdom, United States, Malaysia, Hong Kong, Thailand, Albania, Belgium and Dominican RepublicThis geographical dispersion was intended to make it difficult to trace the funds and to protect the identity of those ultimately responsible. 

“The organization had a corporate and banking network distributed across several jurisdictions”The Interior Ministry said, highlighting the collaboration of authorities such as Europol, Homeland SecuritySI, the Singapore Police Force, the Royal Malaysia Police, and the Royal Thai Police with the Spanish Civil Guard. This cooperation was fundamental in identifying the scale of the operation and proceeding with the arrest of the person responsible, according to the authorities.

The lesson learned from the Madeira Invest Club case

The 'Madeira Invest Club' case illustrates how the oldest scam mechanisms in the financial handbook simply change their disguise. 

La promise of easy money, fixed returns with no apparent risk and creation of an aura of exclusivity These are techniques that have worked for decades, long before the internet existed. The fundamental mistake investors make when they fall into these traps remains the same: trusting guarantees that defy basic market logic.

The lesson from the collapse of "CryptoSpain" and its Ponzi scheme revolves around the need for human prudence. The tools change—from gold to digital art, from bank transfers to cryptocurrencies—but the structure of the pyramid scheme remains intact. The sophistication of the dismantled organization demonstrates that these frauds are not accidents, but meticulously designed criminal operations. exploiting the trust of unsuspecting people.

Given this reality, it is essential that those who wish to enter the world of cryptocurrencies conduct a thorough investigation before entrusting your money. Furthermore, it's important to choose regulated and reliable platforms, such as Bit2Me, which is regulated by the Bank of Spain and was the first platform in the country to obtain the MICA certificationThe new European regulation for digital assets. All this, in order to protect oneself and minimize potential risks in a market that, while offering great opportunities, also requires caution and responsibility.