Crypto influencer arrested in €260M Ponzi case
Spanish law enforcement, in cooperation with international agencies, has arrested a suspect in another crypto-related multimillion-euro Ponzi scheme.
This time, the Guardia Civil, the state security force, stated that it had arrested crypto influencer Álvaro Romillo, also known as Cryptospain, for allegedly operating a scam through the Madeira Invest Club (MIC) since 2023.
According to the Spanish Ministry of the Interior, the influencer was involved in operating MIC, which was used for fraud and money laundering, scamming more than 3,000 victims worldwide out of €260 million. The “Club” also maintained a corporate and banking network in countries such as Portugal, the United Kingdom, Albania, the Dominican Republic, the United States, Malaysia, Belgium, Thailand, and Hong Kong.
“The Madeira Invest Club began operating in early 2023 and presented itself as a ‘private investment club’ offering supposed real estate opportunities, luxury vehicles, yachts, whiskey, gold, and cryptocurrencies, among others, guaranteeing fixed returns and insured buybacks,” the ministry said.
Local media reports indicated that the club promised investors a minimum annual return of 20%.
However, according to the Guardia Civil, there was no real economic activity behind these promises, and the profits of earlier participants were paid using the funds of new investors.
Meanwhile, Spanish media reported that Romillo was detained without bail due to the risk of flight. The suspect testified in court on Friday.
The investigation into MIC began a year ago, when a judge accepted three complaints filed against the “club” and several of its administrators for allegedly operating a pyramid scheme. As part of the investigation, law enforcement confiscated 24 luxury cars, including Ferraris, Jaguars, and Porsches, linked to the MIC.
This is not the first time crypto influencers have been caught deceiving their audiences. As reported by Cybernews, in September, a leak revealed that more than 200 crypto influencer accounts had posted promotional content without proper disclosure.
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