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

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.