Spain’s National High Court Judge José Luis Calama has ordered the detention without bail of cryptocurrency entrepreneur Álvaro Romillo Castillo, widely known online as “CryptoSpain.”
SPANISH AUTHORITIES ARREST “CRYPTOSPAIN” IN $300M PONZI SCHEME
– Spain has dismantled one of its largest crypto frauds to date — a €260 million (~ $300M) Ponzi scheme run by a man who called himself “CryptoSpain.”
Here’s the story…
The Mastermind Behind “Madeira Invest Club”… pic.twitter.com/hzZKl0T4K4
— BSCN (@BSCNews) November 10, 2025
According to an official statement released by the Spanish Civil Guard’s Central Operations Unit, Romillo was arrested for allegedly orchestrating a $280 million (approx. €260 million) investment fraud that affected more than 3,000 victims.
Alleged Ponzi Scheme Promising 20% Annual Returns
Authorities allege that Romillo ran a fraudulent investment club called the Madeira Invest Club (MIC), which began operations in early 2023. Promoted across social media platforms under the CryptoSpain brand, MIC marketed itself as a “private investment group” offering exposure to luxury assets such as real estate, high-end cars, yachts, gold, whiskey, and cryptocurrencies.
Investors were promised fixed annual returns of 20%, supposedly generated through digital art acquisitions that MIC would later “repurchase at a premium.”
However, investigators found no legitimate business activities behind these claims. Instead, the operation resembled a classic Ponzi scheme, where funds from new investors were used to pay earlier participants.
A Civil Guard spokesperson confirmed that the scheme was “diversified across multiple asset types” to appear credible, masking its fraudulent nature.
$31 Million Transfer to Singapore Sparks Flight Risk Concerns
Judge Calama denied bail primarily due to a high risk of flight. Investigators discovered a recent transfer of approximately $31 million from Romillo’s accounts to foreign destinations.
Spanish daily El Mundo, citing official investigation documents, reported that authorities identified a Singapore-based bank account containing investor funds linked to the Madeira Invest Club.
The Fourth Investigative Chamber of the National High Court consequently issued a formal detention order after assessing the risk that Romillo might flee the country.
The investigation also revealed Romillo’s €100,000 ($108,000) political donation to far-right figure Luis “Alvise” Pérez during the European Parliament elections , which is a move now under Supreme Court scrutiny for possible illicit financing ties.
Multi-Country Operation Exposed
Investigators have traced the network’s footprint to at least eight countries, uncovering a complex web of bank accounts and shell companies. This cross-border structure has made the probe “significantly more complex,” according to officials, and highlights the global nature of modern crypto-related fraud.
The Civil Guard’s operation, officially named “Operation Poney,” is now one of Spain’s largest cryptocurrency fraud investigations to date.
Romillo faces multiple serious charges, including fraud, money laundering, and participation in a criminal organization.
Social Media Fame Used to Build Trust
Romillo’s arrest has shocked Spain’s crypto community, where he was known as a charismatic social media influencer with tens of thousands of followers under the CryptoSpain alias.
Authorities believe he exploited this online influence to gain victims’ trust, promoting MIC as a safe, high-yield investment alternative.
Investigators say the “guaranteed buyback and fixed returns” narrative was key to luring unsuspecting investors seeking stability amid volatile crypto markets.
Funds were allegedly diverted to personal accounts and luxury expenditures, including the overseas transfers that triggered concerns about possible asset flight.
The Civil Guard’s statement confirmed that the ongoing probe extends beyond Romillo himself, targeting the entire network structure behind the Madeira Invest Club , which is a sophisticated organization spanning multiple jurisdictions.
