In a major bust, Spanish police have arrested Álvaro Romillo, a well-known figure in the cryptocurrency world and the founder of Madeira Invest Club (MIC), due to accusations of running a massive Ponzi scheme. This scheme is believed to have swindled up to $300 million from numerous investors. Judge José Luis Calama from the National Court ordered his apprehension without bail after authorities uncovered a secret account in Singapore linked to the scam, containing €29 million (around $33.5 million).
Reports from Cadena SER, a reputable national news organization, revealed that Romillo was detained on a Thursday, as prosecutors expressed concerns that he might attempt to flee the country. According to Judge Calama, if found guilty, Romillo could face up to nine years in prison, and possibly up to eighteen years if the fraud is categorized as mass criminal activity.
Claims of Fraud Involving Hundreds of Investors
Spanish investigators kickstarted their probe into MIC in late 2024 after multiple complaints emerged. By October, authorities had received three formal accusations. According to the Central Operational Unit of the Civil Guard (UCO), it is estimated that MIC deceived around 3,000 individuals, conning them out of €260 million (roughly $300 million).
A Spanish legal firm, Zaballos Abogados, has stated that Romillo has cooperated with law enforcement over the past year, actively participating in court matters and aiding in the recovery of assets, which included several luxury vehicles.
As part of their investigations, the National Police and the Public Prosecutor’s Office seized a total of 24 high-end vehicles registered to one of the MIC affiliated firms. In addition, three more luxury vehicles linked to another business within the MIC umbrella were taken. Each vehicle could be uniquely traced through its chassis number and registration plate.
Among the seized vehicles were impressive models, including a Mercedes-Benz S650 Maybach, a Ferrari Testarossa, a Ferrari 430 Scuderia, and several luxury sports cars from brands such as Jaguar and Porsche, reflecting the substantial economic value encompassed within the assets.
MIC demanded a minimum investment of €2,000 per person, promising high returns with assured buybacks at rates reaching an annual 20%. The funds raised were purportedly used to acquire digital “artwork” contracts and stakes in luxury items like yachts and high-end cars.
During the court session on Friday, Romillo mentioned his intentions to refund investors and claimed he had already returned cash to 2,700 individuals, albeit without formal records to substantiate these transactions.
Cash Payments Lead to Separate Election Investigation
The National Court is currently reviewing another case involving CryptoSpain, which is suspected of operating a cryptocurrency pyramid scheme.
A report submitted to Judge Calama revealed significant evidence of Romillo’s possible criminal activities. This report indicated that he made an under-the-table cash payment of €100,000 ($115,000) to finance the 2024 election campaign for controversial Spanish MEP Luis “Alvise” Pérez, who heads the SALF party.
Interestingly, Pérez is linked to a different probe apart from the broader MIC fraud investigation.
As detailed by Euro News, Romillo reportedly handed over this cash shortly before the European elections and even worked with Pérez to facilitate a digital wallet for receiving “anonymous and encrypted” contributions. Pérez confessed on Telegram to accepting this amount informally as “a freelancer without any invoice,” leading to a hefty fine.
Furthermore, Pérez alleged that Romillo struck a deal to avoid pre-trial detention by involving him in this election financing controversy. They allegedly discussed Pérez’s need for between €300,000 and €360,000 for his campaign, emphasizing the financial stakes involved.
It’s noteworthy that Spanish political funding regulations require any donations exceeding €25,000 to be reported to the Court of Auditors and ban annual contributions over €50,000.
