Spanish law enforcement exposes $ 300 million crypto pyramid scheme

Spanish police have detained cryptocurrency influencer Alvaro Romillo, founder of the Madeira Invest Club (MIC) investment platform, who is suspected of creating a pyramid scheme worth about $ 300 million. National Court Judge Jose Luis Calama ordered the arrest without bail after a hidden account in Singapore with € 29 million ($ 33.5 million) related to the scheme was discovered.

The investigation against Romillo began in late 2024 after three formal complaints were filed. According to the Central Operations Directorate of the Spanish Civil Guard (UCO), his company MIC acted as a classic pyramid scheme, defrauding about 3,000 investors. Investigators estimate that the total losses amounted to more than € 260 million. At the same time, Zaballos Abogados law firm reported that Romillo had been cooperating with the authorities for a year, including helping to seize assets, including dozens of luxury cars such as Ferrari, Porsche, Mercedes-Maybach, and Jaguar.

According to the terms of the investment, participants had to deposit at least € 2,000 with a guaranteed annual return of about 20%. The proceeds were allegedly invested in digital «art contracts» and stakes in luxury goods, including yachts, gold, and sports cars. At the trial, Romillo stated that he had already returned the money to 2,700 investors, but did so in cash without official documents.

In addition to fraud, Romillo is also involved in a case of illegal campaign financing. According to the UCO, he transferred € 100,000 ($ 115,000) in cash to Spanish MEP Luis «Alvis» Perez of the far-right SALF party before the 2024 European Parliament elections. According to the investigation, Perez asked Romillo to create a crypto wallet for «anonymous donations.» The politician admitted to receiving the funds, saying it was a «freelance payment without an invoice,» for which he paid a fine of 25% of the amount.

According to Spanish law, political donations over € 25,000 must be declared to the Court of Accounts, and contributions exceeding € 50,000 per year are prohibited. If convicted, Romillo faces 9 to 18 years in prison for large-scale fraud and money laundering.