Spanish authorities have arrested the alleged chief of a $300 million crypto pyramid scheme that defrauded greater than 3,000 buyers. The pretend funding membership promised 20% annual returns and operated throughout a number of nations.
Investigators additionally linked the suspect to the financing of a far-right politician’s marketing campaign and to the switch of hundreds of thousands via offshore accounts.
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CryptoSpain Arrested Over Pyramid Scheme
Álvaro Romillo Castillo, referred to as “Cryptospain,” was detained on Thursday and denied bail. Authorities thought of him a flight threat forward of his Friday court docket look.
The arrest came about below Operation PONEI, led by the Spanish Civil Guard. Officers accuse Castillo of working a world community devoted to fraud and cash laundering via the Madeira Make investments Membership.
The membership started working in early 2023. It offered itself as a “private investment group” providing offers in actual property, luxurious automobiles, 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 Make investments Membership desde 2023.
▶️ La estafa se centraba en productos tan variados… pic.twitter.com/cJUceavqBA
— Guardia Civil (@guardiacivil) November 6, 2025
The scheme lured buyers with guarantees of fastened returns and assured buybacks. Individuals believed their cash was used to purchase digital artworks that the membership would later repurchase at a better value.
Investigators later discovered no actual enterprise exercise behind the operation. As a substitute, it functioned as a pyramid scheme, utilizing funds from new buyers to pay older ones. Authorities additionally revealed that the community maintained financial institution accounts and shell corporations in not less than eight nations.
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The case took a political flip when investigators uncovered potential hyperlinks between Castillo and a Spanish far-right politician.
Far-Proper Social gathering Chief Faces Funding Scrutiny
Based on experiences, Castillo admitted to contributing $115,000 to the 2024 election marketing campaign of Member of the European Parliament Luis “Alvise” Pérez Fernández.
Spain’s Public Prosecutor’s Workplace has requested a broader investigation into the politician’s marketing campaign financing. Officers allege that Fernández sought Castillo’s assist to create crypto wallets that might obtain nameless donations with out authorities oversight.
Fernández, a outstanding right-wing determine, gained recognition via social media and his criticism of immigration insurance policies. He launched his political motion, Se Acabó La Fiesta, in April 2024.
The celebration received three seats over the last European Parliament elections. This success has drawn even nearer scrutiny to its funding sources and potential hyperlinks to illicit exercise.
In opposition to this backdrop, prosecutors at the moment are contemplating increasing their probe to incorporate Castillo’s alleged position in facilitating nameless donations and cash laundering.
If the allegations towards Fernández are confirmed, they’d reveal a deliberate use of cryptocurrency to bypass marketing campaign finance legal guidelines and conceal the origins of political funds.
