Unraveling the FX Winning Pyramid Scheme: The Rise of David Merino
The Unidad Central Operativa (UCO) of the Guardia Civil has identified David Merino as the central figure in a massive pyramid scheme that has affected approximately 15,000 investors across 30 countries through the crypto trading platform FX Winning. This case is now considered one of the largest financial frauds ever investigated in Spain, dwarfed only by the infamous Arbistar case.
The Allegations Against Merino
Born in Las Palmas de Gran Canaria in 1983, Merino has not been among the five individuals arrested recently under the orders of the Audiencia Nacional . However, he is a notable figure within the documentation related to FX Winning, featuring nearly 700 times in the UCO’s comprehensive report spanning 444 pages. Investigators claim he is both the “leader” and “ideologue” behind this criminal operation, focusing on conducting a pyramid scheme linked to cryptocurrencies and laundering the illegally acquired funds.
According to UCO, Merino has played a pivotal role, often from the shadows, employing various complex corporate structures, both national and international. His moves included intricate transactions with cryptocurrencies, which helped obscure his identity and control over the criminal organization. “David Merino assumes leadership roles, often operating behind the scenes, utilizing diverse and intricate corporate structures and complex transactions,” the report states.
FX Winning: A Platform for Fraud
Merino was reportedly the founder , director , and sole shareholder of FX Winning. This platform has potentially resulted in losses exceeding €460 million for 15,000 investors from various countries, including significant populations from the United States, Mexico, Argentina, and even Australia. In Spain alone, the UCO indicates that around 500 individuals have already reported complaints against the platform.
The UCO describes Merino as the “brain” of the entire scheme, the individual responsible for both the formation and execution of the scam, as well as the subsequent laundering of the funds generated by the fraudulent activities originating in 2020. One of the most pressing questions posed by the report is: Why hasn’t he been arrested? While this remains somewhat unclear, it’s suggested that Merino has evaded capture by relocating to the United Arab Emirates , particularly Dubai, known for its lack of cooperation in international law enforcement matters.
Complexity and Evasion
Notably, Merino is believed to have established FX Winning in Hong Kong , where it was registered on April 7, 2020. He officially resigned from the company by July 2021, yet investigators maintain that he continued orchestrating activities from behind the scenes through a complex web of companies such as We Are Turbo, MAM, The Secrets Tours, and The Billion Enterprises. Reports suggest that he has received more than 4,000 bitcoins and in excess of €3.3 million in bank transfers connected to the fraudulent operations, with these assets currently hidden from authorities.
In addition to the ongoing investigation by the Audiencia Nacional, Merino is facing other legal challenges. The UCO asserts he has open civil cases in the United States due to FX Winning’s activities, which also included operations in Florida.
Connections to Other Crypto Scandals
The Guardia Civil links Merino to several other crypto scandals , including the notorious Algoirithms Group and primarily to Arbistar, which is considered the largest cryptocurrency fraud investigated in Spain, amounting to €1.9 billion and affecting 32,000 individuals . Despite not attending the trial that concluded with a sentence prepared in June, sources from the UCO claim he has ties to Arbistar, having been listed as one of its founders and a CEO on its old website.
Like Arbistar, which operated out of Tenerife , FX Winning established its base in the Canary Islands, specifically in Las Palmas de Gran Canaria, Merino’s hometown. Investigators believe that FX Winning may represent a more sophisticated iteration of Arbistar, citing links and similarities in their operational tactics.
Ultimately, the UCO postulates that David Merino has adeptly evolved and refined the workings of FX Winning, utilizing his prior experiences from other scams to establish it as his method of livelihood. It remains to be seen how the legal landscape will unfold as authorities continue their attempts to piece together this convoluted web of deceit and financial manipulation.