The Operation: Madeira Invest Club
The operation, called the Madeira Invest Club, allegedly promised guaranteed profits from assets like cryptocurrency and gold. It also included luxury yachts.
Officials estimate the total losses at around 260 million euros ($300 million).
The Illusion of Guaranteed Returns
The suspect, identified as A.R. and known online as “CryptoSpain,” launched the Madeira Invest Club in early 2023. Marketed as a private investment group, the club offered what seemed like high-yield, low-risk contracts tied to digital art, whisky, real estate, and luxury cars. Participants were promised steady profits and buyback guarantees, creating an image of stability and exclusivity.
However, Spanish investigators revealed that no real economic activity ever took place. Instead, the operation functioned as a classic Ponzi scheme, where early investors received payouts funded by newer participants. The illusion of success fueled rapid growth, pulling in fresh money until the scheme collapsed under its own weight.
Spain’s Civil Guard arrested “CryptoSpain,” head of Madeira Invest Club, for running a €260 million crypto-linked Ponzi scheme that lured over 3,000 victims with “guaranteed returns” since 2023. Investigators found no real investments, only new funds used to repay earlier…
— Wu Blockchain (@WuBlockchain) November 9, 2025
According to Spain’s Ministry of Interior, the network behind the scam included dozens of shell companies and international bank accounts stretching across Portugal, the U.K., the U.S., Malaysia, and Hong Kong. Europol and law enforcement agencies from the U.S., Singapore, and Thailand joined forces under “Operation PONEI” to trace the funds and identify victims.
A Growing Trend in Digital Investment Scams
This case highlights a rising global issue: sophisticated scams mixing cryptocurrency with traditional investments. According to data from Chainalysis, crypto-related fraud reached over $5.9 billion in 2023, showing how criminals are blending old Ponzi tactics with new technology to build trust and attract investors.
A lot of crypto scams aren’t code-based, they’re social engineering.
Scammers earn your trust, then trick you into doing something that gives them access like clicking links, sharing keys, or approving transactions. 🧵 pic.twitter.com/jjGLCarMDa
— Phantom (@phantom) September 24, 2025
A real-world parallel can be found in the 2022 “HyperVerse” case, where a fake metaverse project promised users daily returns from virtual real estate. Just like Madeira Invest Club, it collapsed once withdrawals outpaced new deposits, leaving thousands of investors empty-handed.