Spanish authorities have detained Álvaro Romillo, a crypto influencer known online as CryptoSpain, on charges of running a €260 million ($300 million) Ponzi scheme through his investment group Madeira Invest Club (MIC). Romillo was arrested on Thursday after investigators linked him to a Singapore bank account containing €29 million allegedly tied to the operation. The National Court in Madrid ordered Romillo held without bail after he testified for two hours before Judge José Luis Calama. Prosecutors argued he was a flight risk given the size of the overseas funds. The Civil Guard’s Central Operational Unit said MIC took money from about 3,000 investors under the promise of high, fixed returns from luxury assets and digital contracts that never existed. The case is among Spain’s largest crypto-linked frauds to date and could carry a prison sentence of up to 18 years if classified as a mass offense, according to a report cited by Cadena SER.
Ponzi Structure and Investor Losses
Investigators allege that MIC solicited funds from the public with a minimum entry of around €2,000 per investor, offering “guaranteed” annual returns of about 20%. The money was supposed to finance purchases of tokenized art, luxury cars, yachts, and gold, but authorities believe profits were paid out using new deposits. Romillo reportedly told the court that he intended to repay investors and had already returned money to 2,700 participants, though he said most payments were made in cash without documentation. Authorities have seized several luxury vehicles and assets linked to the scheme, including Ferraris and real estate. Court documents indicate the probe began in late 2024, after three formal complaints were filed against MIC in October that year. Prosecutors said Romillo had cooperated with the investigation until the discovery of foreign bank accounts prompted fears that he might flee Spain. The funds allegedly moved through a Singapore-based financial institution and multiple shell companies connected to MIC operations in Portugal and Dubai.
Political Links Under Investigation
The investigation has also drawn attention to Romillo’s political ties. He previously admitted to donating €100,000 in unreported cash to the 2024 election campaign of far-right Member of the European Parliament Luis “Alvise” Pérez, leader of the SALF party. Pérez is under separate investigation for campaign financing irregularities, though his case remains distinct from the MIC fraud probe. Spanish prosecutors have not confirmed whether any of the MIC funds were used for political purposes. Investigators are examining whether Romillo’s offshore transfers overlapped with payments made during Pérez’s campaign period.
Broader Implications for Spain’s Crypto Market
Spain has become a key European hub for crypto marketing and influencer-driven promotions, prompting regulators to tighten oversight. The National Securities Market Commission (CNMV) has stepped up enforcement of advertising rules since 2023, targeting social media personalities who promote high-risk crypto investments without authorization. Legal analysts say the Romillo case could test Spain’s updated fraud statutes covering tokenized assets and digital investment schemes. Authorities are expected to expand investigations to other entities linked to MIC’s network across Europe and Asia. As of Friday, Romillo remains in custody pending formal charges and asset recovery proceedings. The court has not yet set a trial date. Victims’ associations representing MIC investors have begun coordinating civil claims to recover lost funds.