According to the police, the mastermind of the scheme, who lived in the Middle East, is currently serving a 20-year prison sentence in the United States. He was looking for ways to invest illegally obtained funds in Spain. He contacted businesspeople in Mallorca, one of whom managed a struggling hospitality business in Palma. His intention was to have them appear as supposed investors in large real estate projects, thereby concealing the true owner of the capital.
The network of shell companies allowed money from the victims of the cryptocurrency scam to flow through accounts in the United Arab Emirates, Singapore, Georgia, and Sweden. In order to trace the funds, the National Police collaborated with the FBI and German and Swedish police.
Funds were used to acquire and renovate high-value properties in parts of Palma. Despite the pyramid scheme collapsing before the projects were completed, those involved managed to sell a building with 12 holiday rental apartments, a mansion in Sa Calatrava, and two beachfront villas in Portixol.
Those now detained in Palma were listed as the owners of the investments. A court in Palma has ordered the seizure of properties valued at €15 million, including a building in El Terreno with a penthouse valued at €6.8 million, a boat, and a luxury vehicle.
