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Spanish authorities have arrested Carlos Romillo, the businessman behind Madeira Invest Club, a €260 million crypto Ponzi scheme that defrauded over 3,000 investors across Europe with promises of guaranteed 20% annual returns.
Judge José Luis Calama ordered Romillo jailed Thursday after investigators uncovered €29 million ($33.5 million) hidden in a Singapore bank account, citing him as a serious flight risk.
The arrest marks a major development in Spain’s months-long probe into Madeira Invest Club (MIC) which is a platform that promised investors guaranteed returns of up to 20% annually from alleged ventures in digital art, luxury goods, and high-end collectibles.
According to a statement from Spain’s Civil Guard, the MIC operation raised approximately €260 million before collapsing. “The structure followed a classic Ponzi model, using new investors’ money to pay existing participants,” — a Civil Guard spokesperson confirmed.
Authorities began probing the crypto investment scam in late 2024 after multiple victims filed complaints. Romillo appeared to cooperate initially, allowing seizures of luxury cars, jewelry, and properties while claiming transparency. However, prosecutors became alarmed when evidence surfaced of offshore transfers and hidden accounts under nominee ownership in Asia.
The Civil Guard’s economic crimes unit traced funds to accounts held in Singapore and Switzerland, signaling attempts to conceal investor money beyond Spanish jurisdiction. Court filings, reviewed by Cadena SER, suggest Romillo could face up to nine years in prison, or eighteen years if the offenses are categorized as large-scale financial crimes.
During his court hearing, Romillo maintained his innocence, insisting that he “always intended to reimburse investors.” He claimed to have already refunded 2,700 clients in cash but provided no verifiable documentation.
Adding to the controversy, investigators confirmed Romillo previously made an undeclared €100,000 political donation to far-right MEP Luis “Alvise” Pérez, leader of Spain’s SALF Party, who is now facing a separate corruption probe.
The revelation has fueled political tensions around the growing intersection between unregulated finance and extremist movements.
“This is not just a financial fraud — it’s a wake-up call for European regulators,” — María del Castillo, legal expert at the Spanish Association for Investor Protection, told El Mundo. “Cases like the Madeira Invest Club highlight the systemic risks of unchecked crypto promotions.”
The MIC scandal underscores Spain’s tightening stance on digital asset oversight following several high-profile crypto investment scams. In June, regulators expanded financial disclosure requirements for platforms offering tokenized investments and NFTs. The Bank of Spain and CNMV (National Securities Market Commission) have also issued joint advisories warning investors about unrealistic profit promises.
Meanwhile, authorities are collaborating with Europol to trace assets and identify international participants connected to Romillo’s operation. Spanish officials have described the case as one of the largest crypto frauds in European history, comparable to Germany’s OneCoin scandal.
The crackdown aligns with the EU’s Markets in Crypto-Assets Regulation (MiCA), which seeks to bring greater transparency to digital investments and prevent deceptive marketing.
In a separate incident highlighting the growing risk landscape, blockchain analytics firm Lookonchain reported that a private investor lost $3.05 million in Tether (USDT) to a crypto investment scam involving a phishing transaction. The attacker exploited a common user oversight verifying only the first and last few characters of a wallet address.
According to CertiK’s 2025 midyear report, crypto investors have collectively lost $2.2 billion to hacks, scams, and breaches in the first half of the year. Wallet compromises accounted for $1.7 billion, while phishing scams caused over $410 million in losses across 132 incidents.
“The scale of these phishing and investment scams shows that the sophistication of threat actors has outpaced user awareness,” — Jason Lau, Chief Security Officer at OKX Exchange, said in a recent briefing.
Romillo’s arrest marks a turning point in Spain’s battle against crypto investment scams, reflecting a broader EU effort to rebuild investor confidence. As prosecutors prepare formal charges, financial watchdogs are pushing for stronger penalties and enhanced traceability tools for crypto transactions.
With over €260 million in potential losses, Spain’s MIC case stands as a stark reminder of the dangers of unregulated investment opportunities and the global urgency for coordinated crypto oversight.
