CryptoSpain Detained in $300 Million Fraud Probe as Spanish Court Uncovers Global Ponzi Scheme

Spanish crypto influencer Álvaro Romillo, better known online asCryptoSpain, has been detained without bail on charges of large-scale fraud and money laundering linked to his investment organization, Madeira Invest Club (MIC). Authorities allege that Romillo orchestrated a $300 million Ponzi scheme that defrauded over 3,000 investors across Spain and abroad.

The arrest took place Thursday after investigators discovered a Singapore bank account connected to Romillo containing €29 million, which prosecutors described as “clear evidence of offshore concealment.” Judge José Luis Calama of Spain’s National Court ordered his immediate imprisonment, citing flight risk concerns following a two-hour testimony session.

According to Spain’s Civil Guard, MIC operated by soliciting deposits from retail investors — often around €2,000 each — under the guise of purchasing digital “artwork” contracts and fractional shares in luxury goods such as yachts, Ferraris, and gold. Investors were promised fixed annual returns of up to 20 percent and guaranteed buybacks, terms prosecutors now describe as “financially implausible.”

Investigators estimate that MIC collected roughly €260 million (about $300 million) through this structure. The scheme allegedly funneled investor capital toward earlier participants to sustain the illusion of profitability, a hallmark of Ponzi operations. Authorities began probing MIC in late 2024 after receiving multiple complaints. Over the past year, they have seized numerous assets, including high-end cars and properties registered under Romillo’s associates.

Romillo told the court he intended to repay investors and claimed to have already reimbursed more than 2,700 people — though he admitted that most payments were made in cash and lacked documentation. Prosecutors dismissed the explanation, arguing that his financial trail remains opaque and that new offshore accounts could emerge.

Adding to the controversy, Romillo is also accused of covertly funding the 2024 European election campaign of far-right MEP Luis “Alvise” Pérez, leader of the SALF party, with an unreported €100,000 cash donation. Pérez is currently under investigation in a separate case involving campaign financing irregularities.

A judicial report obtained byCadena SERindicates that Romillo could face up to nine years in prison if convicted on basic fraud and money laundering charges, and as many as eighteen years if the court deems his offenses part of a large-scale criminal enterprise.

The case has sent shockwaves through Spain’s crypto community, long struggling to distance itself from high-profile frauds that tarnish the sector’s legitimacy. Regulators have renewed calls for stricter oversight of influencer-led investment schemes, warning that “financial populism through social media” continues to exploit retail investors.

With Romillo’s assets frozen and his international links under scrutiny, the case may become a defining test of Spain’s evolving crypto enforcement regime.