**Crypto Influencer “CryptoSpain” Arrested in €260 Million Ponzi Scheme Scandal**
Spanish authorities have arrested Álvaro Romillo, known online as “CryptoSpain,” in connection with a massive €260 million ($300 million) investment fraud. Romillo faces charges for operating the Madeira Invest Club, which authorities describe as a sophisticated Ponzi scheme targeting more than 3,000 victims across multiple countries.
**The Madeira Invest Club: Promises and Deceit**
The Madeira Invest Club started operations in early 2023, marketing itself as an exclusive private investment group. Prospective members were required to deposit a minimum of approximately €2,000 to join. The club offered investment contracts in digital artwork, luxury cars, whisky, real estate, and cryptocurrencies—promising guaranteed buyback options and fixed annual returns of around 20%.
These unusually high returns attracted thousands of investors worldwide. However, Spanish authorities soon discovered that no genuine economic activity or investments took place within the club. Instead, the operation relied on funds from new participants to pay earlier investors, a classic Ponzi scheme structure.
**International Network and Investigative Breakthrough**
Dubbed Operation PONEI, the investigation uncovered a complex network of shell companies and bank accounts spanning at least 10 countries, including Portugal, the UK, the US, Malaysia, and Hong Kong. The probe involved Europol and law enforcement cooperation from Singapore, Malaysia, Thailand, and the United States.
Initially, Romillo cooperated with authorities beginning in late 2024, following complaints from investors. He attended court hearings and authorities seized dozens of luxury cars, yet Romillo was not detained during this period and continued to live freely.
**Flight Risk and Asset Discovery**
Concerns over Romillo’s potential to flee intensified when prosecutors identified a Singapore bank account containing €29 million tied to his businesses. This revelation prompted National Court judge José Luis Calama to order Romillo’s detention without bail, citing the substantial foreign assets and clear flight risk. Romillo testified for two hours before the court and now faces a possible sentence of 9 to 18 years in prison if convicted, with harsher penalties considered due to the scheme’s extensive impact.
**Romillo’s Claims and Missing Documentation**
During his court appearance, Romillo insisted he intended to repay investors and claimed that he had already returned money to roughly 2,700 individuals. However, he admitted these repayments were made in cash and lacked any supporting documentation.
**Political Connections Emerge**
Meanwhile, Romillo acknowledged making an unreported €100,000 cash donation to Spanish MEP Luis “Alvise” Pérez during the 2024 election campaign. Pérez, leader of the far-right SALF party, is currently under investigation in a separate case not directly related to the Madeira Invest Club probe.
**Ongoing Investigation**
The Ministry of Interior officially announced Romillo’s arrest and provided details about the alleged Ponzi scheme. The investigation is ongoing, with authorities working to trace additional assets and identify other potential victims around the globe.
Stay tuned for updates as Spanish authorities continue to unravel one of the largest investment frauds in recent history.
https://coincentral.com/spanish-authorities-arrest-crypto-influencer-in-e260-million-ponzi-scheme-investigation/
