Mastermind behind $300M crypto pyramid scheme arrested in Spain

Spanish authorities have arrested the alleged chief of a crypto pyramid scheme that defrauded greater than 3,000 victims of €260 million ($300 million) with the promise of 20% annual returns.

Álvaro Romillo Castillo, who goes by the pseudonym “Cryptospain,” was arrested Thursday and denied bail as a result of he was thought of a flight threat forward of a scheduled courtroom look on Friday.

Castillo is claimed to have led the Madeira Make investments Membership, a so-called ‘non-public funding membership’ that supplied buyers alternatives actual property, costly whiskey, luxurious automobiles, yachts, gold and crypto whereas dangling from the carrot of assured returns.

The alleged crypto scammer was arrested by the Spanish Civil Guard.

As reported by the Ministry of the Inside, buyers’ contributions had been formalized by means of buy agreements for digital artworks, which the membership promised to purchase again inside a sure time utilizing predetermined income.

Nevertheless, investigations by the Guardia Civil revealed that the Madeira Make investments Membership was merely a pyramid scheme that used the income of the primary members to pay newcomers.

Castillo helped far-right politician with crypto

Castillo additionally reportedly confessed to paying 100,000 euros to finance the 2024 election marketing campaign of right-wing politician Luis ‘Alvise’ Pérez Fernández.

The Spanish Public Prosecution Service demanded an investigation into the MEP, claiming that Fernández had contacted Castillo for recommendation on establishing wallets for “nameless donations from third events outdoors any monetary management by the authorities.”

Learn extra: Spain might quickly settle tax money owed by confiscating crypto

Fernández has gained a big social media following among the many proper and formally launched the anti-immigration get together ‘Se Acabo La Fiesta’ in October.

He beforehand received three seats in final 12 months’s elections.

The company can also be attempting to convey Romillo underneath the scope of its investigation into Fernández.

Castillo says he returned many of the cash

Castillo instructed a courtroom listening to at the moment that he has returned the cash to many of the scheme’s 2,700 victims, however the Inside Ministry estimates greater than 3,000 folks had been affected.

The enterprise concerned shell corporations and financial institution accounts all over the world, together with entities within the UK, US, Singapore, Albania, Portugal and Thailand. Nevertheless, Castillo claims he has no “formal coaching” in finance and that he was attempting to keep away from taxes in Spain.

Earlier than his arrest, Spanish tax authorities are mentioned to have found that he had moved overseas for €29 million.