Spanish Authorities Arrest Alleged Leader Of $260M Ponzi Scheme

Spanish authorities have arrested Alvaro Romillo, a crypto influencer and the brains behind the alleged Ponzi scheme, Madeira Invest Club (MIC). Romillo has been charged with orchestrating a $300 million fraud.

According to the authorities, MIC defrauded over 3,000 investors, promising them annual returns of up to 20%.

Spanish Crypto Influencer Taken Into Custody

Spanish authorities have jailed crypto influencer Alvaro Romillo without bail for allegedly orchestrating a $300 million Ponzi scam. Romillo was taken into custody after authorities discovered a Singapore bank account with €29 million ($33.5 million) linked to his network of companies. National Court judge José Luis Calama stated that the discovery made Romillo a flight risk and ordered the Spanish Civil Guard to arrest him after a two-hour testimony.

3,000 Investors Defrauded

According to Spain’s Civil Guard, the Madeira Invest Club lured over 3,000 unsuspecting investors into what investigators described as a classic Ponzi scheme. This allowed the company to raise €260 million by promising investors unrealistic annual returns of up to 20%. The firm also claimed to offer investment opportunities in digital artwork and luxury goods, including yachts, Ferraris, and Gold, guaranteeing buyback options that prosecutors say were fraudulent.

Spanish authorities began probing MIC and its scheme in late 2024 and filed multiple complaints that year. Romillo appeared to initially cooperate with the authorities as they seized dozens of high-end vehicles and other assets. Romillo’s arrest was only triggered after the authorities discovered offshore bank accounts, raising concerns he might abscond during the investigation.

According to court documents, Romillo could face up to nine years in prison. The sentence could go up to eighteen years if the judge classifies the crimes as “mass offences.” Romillo insisted during Friday’s hearing that he planned to fully reimburse investors, and claimed he had already repaid around 2,700 investors in cash. However, he could not provide any documentation to verify these claims.

Romillo has also admitted to making a €100,000 under-the-table donation to far-right MEP Luis “Alvise” Pérez’s 2024 campaign. The leader of the SALF Party is also facing a separate investigation.

Crypto Scams On The Rise

The MIC scandal has become one of the largest crypto fraud cases in Spain, and marks another high-profile event in Europe’s ongoing crackdown on unregulated investment schemes. However, incidents of crypto scams are on the rise. Recently, a cryptocurrency investor fell victim to a crypto phishing scam, losing over $3 million in USDT after signing a malicious blockchain transaction. The malicious transaction, flagged by blockchain analytics platform Lookonchain, highlights the growing threat of phishing attacks targeting digital asset holders.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.