Spanish crypto influencer CryptoSpain detained on $300 million fraud, money laundering charges

The Block

Bitcoin / Tether

+0.79%

Hyperliquid / USD Coin

Spanish crypto influencer Álvaro Romillo, founder of the alleged Ponzi scheme Madeira Invest Club (MIC), has been detained without bail by a Spanish court on charges of perpetrating a $300 million fraud.

Romillo was arrested in Spain on Thursday after being deemed a flight risk when Spanish officials discovered a Singapore bank account, funded with €29 million ($33.5 million) from businesses linked to Romillo, according to local news reports. National Court judge José Luis Calama ordered Romillo imprisoned without bail after Romillo testified before the court, answering questions for two hours.

The Central Operational Unit of Spain's Civil Guard believes Romillo's MIC perpetrated a Ponzi scheme that defrauded 3,000 victims for a total of €260 million (over $300 million). Spanish authorities began probing MIC in late 2024, announcing three complaints in Oct. 2024. Over the past year, Romillo has cooperated with authorities, appearing at court hearings, while law enforcement seized assets including dozens of luxury cars .

Only when prosecutors discovered the foreign bank accounts was Romillo arrested out of fear that he would flee the country, according to reports. The fraud could wind up with Romillo sentenced "to 9 years in prison, and even up to 18 years in prison if it is considered that they constitute a mass offense," a report obtained by Cadena SER stated.

MIC solicited deposits (around €2,000 minimum per investor) to buy digital “artwork” contracts and shares in luxury goods, like yachts, Ferraris, and gold, with guaranteed buyback and fixed profits that were unusually high, at around 20% per year. Romillo told the court during his appearance Friday that he intended to pay investors back and has even returned money to 2,700 parties, though he did so in cash and claimed to have no way to account for the payments.

Romillo had also previously admitted to funding the 2024 election campaign of far-right Spanish MEP Luis "Alvise" Pérez, leader of the SALF party, with a €100,000 under-the-table cash donation. Pérez is under investigation in a separate case from the larger MIC investigation.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

Spanish crypto influencer CryptoSpain detained on $300 million fraud, money laundering charges

Risk Disclosure