Spanish authorities have arrested Álvaro Romillo, a crypto influencer known online as “Cryptospain,” for his alleged role in a €260 million Ponzi scheme linked to the Madeira Invest Club (MIC). The operation, active since early 2023, targeted thousands of investors across several countries through promises of guaranteed high-yield returns.
The Guardia Civil coordinated the arrest with international agencies, describing the scheme as one of the largest crypto-related frauds uncovered in Spain. According to the Ministry of the Interior, more than 3,000 people were affected worldwide, with victims in Portugal, the UK, Albania, the Dominican Republic, the US, Malaysia, Belgium, Thailand, and Hong Kong.
The Madeira Invest Club presented itself as a private investment consortium offering opportunities in luxury assets such as real estate, vehicles, yachts, whiskey, gold, and cryptocurrencies. Marketing materials promised fixed annual returns of up to 20 percent and insured buybacks, portraying the club as a legitimate vehicle for high-net-worth investors.
Investigators found, however, that there was no underlying business activity to support these claims. Instead, the organisation allegedly used funds from new investors to pay existing participants, a structure typical of Ponzi operations. Spanish officials said the setup generated significant publicity through social media promotions led by Romillo, whose online persona lent credibility to the enterprise.
Authorities launched the investigation more than a year ago after three formal complaints were filed in court. During the inquiry, police seized 24 luxury cars, including Ferraris, Jaguars, and Porsches, believed to have been purchased with investor money. The Guardia Civil said the confiscated assets form part of a broader money laundering investigation connected to multiple jurisdictions.
Romillo was detained without bail after a court appearance in Madrid, with prosecutors citing a risk of flight and potential interference with evidence. He remains in custody while judicial proceedings continue. The Spanish Ministry of the Interior stated that additional arrests could follow as investigators trace the flow of funds through offshore entities and cryptocurrency wallets.
Growing concern over influencer-led scams
The case highlights increasing scrutiny of social media figures who promote investment products without proper disclosure. Many crypto influencers have built large audiences by advertising digital asset opportunities, often without regulatory oversight. Cybercrime analysts say such endorsements can create false trust among retail investors unfamiliar with financial compliance standards.
Earlier this year, a Cybernews investigation revealed that more than 200 crypto accounts had promoted investment schemes without identifying sponsorship or verifying claims. Financial regulators across Europe have since urged platforms to enforce stricter advertising transparency, warning that unverified promotions remain a significant risk vector for fraud.
Experts note that Spain’s latest enforcement action aligns with a wider trend of authorities taking stronger measures against crypto-linked financial crimes. Similar prosecutions in France, Italy, and the UK have involved online personalities accused of misleading investors through high-yield marketing tactics. The European Union’s Markets in Crypto-Assets (MiCA) regulation, expected to take full effect in 2026, aims to address these gaps by setting standards for disclosure and investor protection.
Law enforcement officials emphasised that recovery prospects for victims remain uncertain. Many assets were converted into digital currencies and transferred through layered wallets, complicating tracing efforts. Authorities are working with blockchain analysis firms to identify and freeze associated accounts.
The Guardia Civil has urged affected individuals to file claims and cooperate with investigators. “Our priority is to recover as much of the invested capital as possible and to prevent similar schemes from targeting more victims,” a spokesperson said.
The ongoing investigation is expected to reveal further details about how the Madeira Invest Club operated across multiple jurisdictions and leveraged crypto assets to obscure financial flows.