Spanish Crypto Influencer Álvaro Romillo Detained Without Bail in $300M Fraud Case

Spanish authorities have ordered the detention without bail of Álvaro Romillo, a prominent cryptocurrency influencer and founder of the suspected Ponzi scheme, Madeira Invest Club (MIC). He faces serious charges of orchestrating a fraudulent scheme that allegedly swindled investors out of $300 million.

Key Takeaways:

Álvaro Romillo, a Spanish crypto influencer, has been jailed without bail for supposedly managing a $300 million Ponzi scheme.
The Madeira Invest Club allegedly deceived over 3,000 investors with promises of annual returns up to 20%.
Romillo could be sentenced to up to 18 years in prison, with authorities linking him to a hidden €29 million account in Singapore.

Romillo was apprehended on Thursday after investigators discovered a bank account in Singapore holding €29 million ($33.5 million) connected to his network of companies. This led judges to believe he might flee, prompting National Court judge José Luis Calama to order him held without bail after a detailed two-hour testimony.

Spanish Crypto Influencer Álvaro Romillo Jailed Without Bail Over $300M Fraud Case

Investigation by Spain’s Civil Guard into Madeira Invest Club

Spain’s Civil Guard has reported that MIC attracted more than 3,000 victims, engaging them in what appears to be a traditional Ponzi scheme that raised approximately €260 million, promising unrealistic annual returns of as much as 20%.

The company advertised investment opportunities in digital art and luxury items including yachts, Ferraris, and gold, all with supposed buyback guarantees that prosecutors now claim were fraudulent.

The investigation into the scheme began in late 2024, spurred by multiple complaints filed by October of that year. Over the following months, while law enforcement seized various luxury vehicles and assets, Romillo appeared to cooperate with the investigation.

His arrest was prompted only after prosecutors confirmed suspicions surrounding the offshore bank accounts, raising fears he may attempt to escape justice. According to court documents referenced by Cadena SER, Romillo could be sentenced to nine years in prison, or up to eighteen years if the crimes are categorized as “mass offenses.”

During a court hearing, Romillo maintained that he intended to reimburse investors, claiming to have already returned funds to around 2,700 people in cash, although he did not provide any evidence to substantiate these claims.

The situation has also intensified due to his prior acknowledgment of making a €100,000 under-the-table donation to the campaign of far-right MEP Luis “Alvise” Pérez, who is now under investigation.

The MIC scandal has emerged as one of the largest cryptocurrency frauds in Spain’s history, marking a significant challenge for Europe's ongoing efforts to regulate investment schemes.

Crypto Investor Loses $3M in Phishing Scam

In a separate incident, a cryptocurrency investor has lost $3.05 million in Tether (USDT) after unknowingly signing a malicious blockchain transaction, highlighting the persistent threat of phishing scams for digital asset holders.

The loss was reported by blockchain analytics platform Lookonchain on Wednesday, emphasizing the rising dangers of such attacks. The assailant exploited a common practice among crypto users: verifying only the beginning and end of a wallet address while neglecting the middle part.

In the first half of 2025, crypto investors experienced losses exceeding $2.2 billion due to hacks, scams, and breaches, primarily driven by compromised wallets and phishing schemes, according to the latest security report from CertiK. Wallet breaches alone accounted for $1.7 billion in losses across just 34 incidents, while phishing scams were responsible for more than $410 million across 132 attacks.