Spanish Authorities Arrest Crypto Influencer in €260 Million Ponzi Scheme Investigation

TLDR

• Spanish authorities arrested Álvaro Romillo, known as “CryptoSpain,” for allegedly running a €260 million ($300 million) Ponzi scheme through Madeira Invest Club
• The scheme attracted over 3,000 victims by promising guaranteed returns of about 20% annually on investments in digital art, luxury vehicles, whisky, real estate, and cryptocurrencies
• Investigators found no real economic activity took place, with early investors paid using funds from new participants
• The operation used a complex network of shell companies and bank accounts across at least 10 countries including the U.S., UK, Portugal, Malaysia, and Hong Kong
• Romillo was arrested after authorities discovered a Singapore bank account containing €29 million linked to his businesses and was detained without bail as a flight risk

Spanish police arrested crypto influencer Álvaro Romillo on Thursday in connection with an alleged €260 million ($300 million) investment fraud. Romillo, who operates under the online name “CryptoSpain,” faces charges related to running the Madeira Invest Club.

The Civil Guard’s Central Operational Unit accuses Romillo of orchestrating a Ponzi scheme that defrauded approximately 3,000 victims. The club began operations in early 2023 and marketed itself as a private investment group. Members were required to deposit a minimum of around €2,000 to participate.

The scheme offered contracts for various assets including digital artwork, luxury vehicles, whisky, real estate, and cryptocurrencies. Investors were promised guaranteed buyback options and fixed annual returns of approximately 20%. These unusually high returns attracted thousands of participants across multiple countries.

Spanish authorities state that no legitimate economic activity or investments occurred through the club. Instead, the operation functioned as a classic Ponzi scheme. Early participants received payments funded by deposits from newer investors rather than actual investment returns.

International Network of Shell Companies

The investigation, called Operation PONEI, uncovered a complex financial structure spanning at least 10 countries. This network included shell companies and bank accounts in Portugal, the United Kingdom, the United States, Malaysia, and Hong Kong. The operation involved cooperation from Europol and law enforcement agencies in the U.S., Singapore, Malaysia, and Thailand.

Romillo had been cooperating with authorities since late 2024 when Spanish officials first announced three complaints against Madeira Invest Club. He appeared at court hearings while law enforcement seized assets including dozens of luxury cars. Throughout this period, Romillo was not detained and continued to move freely.

Flight Risk Concerns Lead to Arrest

The situation changed when prosecutors discovered foreign bank accounts linked to Romillo’s businesses. Authorities found a Singapore bank account containing €29 million connected to companies associated with Romillo. This discovery raised concerns that he might flee the country.

National Court judge José Luis Calama ordered Romillo detained without bail after he testified for two hours before the court on Friday. The judge determined Romillo posed a flight risk given the foreign assets. Romillo could face between 9 and 18 years in prison if convicted, with the higher sentence possible if prosecutors prove the offense affected a large number of victims.

During his court appearance, Romillo claimed he intended to repay investors. He stated he had already returned money to approximately 2,700 parties. However, Romillo said these payments were made in cash and he had no documentation to verify the transactions.

Political Connections Surface

Separate from the fraud investigation, Romillo admitted to making an unreported €100,000 cash donation to Spanish MEP Luis “Alvise” Pérez during the 2024 election campaign. Pérez leads the far-right SALF party and is under investigation in a separate case unrelated to the larger Madeira Invest Club probe.

The Ministry of Interior announced Romillo’s arrest and provided details about the alleged scheme’s operations. The investigation continues as authorities work to trace additional assets and identify other potential victims across the international network.

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