Spain Cracks €260 Million Ponzi Scheme After Defrauding 3,000 Investors
The operation, known as the Madeira Invest Club, allegedly defrauded more than 3,000 investors across Europe and Latin America, promising guaranteed annual returns of up to 20% through what turned out to be a pyramid-style scheme.
Romillo was detained by Spain’s elite Central Operational Unit (UCO) due to his perceived risk of flight, following a lengthy investigation into his financial network.
How the Scheme Worked
Authorities say the Madeira Invest Club presented itself as an elite investment group offering access to contracts supposedly backed by diverse assets, including real estate and digital currencies. In reality, no legitimate investments were ever made. Instead, funds from new participants were allegedly used to pay existing members, the classic hallmark of a Ponzi structure.
The scheme is believed to have been active for several years, during which Romillo and his associates used aggressive marketing, social media influencers, and exclusive membership tiers to attract new participants. Victims, many of whom were small investors seeking stable passive income, collectively lost an estimated €260 million ($300 million).
Political and Financial Links Emerge
The scandal has also taken on a political dimension. Investigators discovered that Romillo had previously donated €100,000 to right-wing Member of the European Parliament Luis “Alvise” Pérez, raising concerns about possible attempts to secure political favor or legitimacy for his operations.
In addition, a Singaporean bank account connected to Romillo was found containing €29 million, believed to be sourced from investor deposits. Authorities are working with international counterparts to trace additional offshore holdings and crypto wallets potentially tied to the Madeira Invest Club.
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Judicial Action and Detention
A judge from Spain’s Audiencia Nacional, the country’s top criminal court, has ordered provisional detention without bail for Romillo, citing the scale of the alleged fraud and the likelihood of further concealment of assets. Spanish prosecutors are preparing formal charges that could include financial fraud, money laundering, and criminal association.
The Civil Guard has also begun proceedings to recover seized assets and reimburse victims where possible, though investigators warn that much of the money may have already been transferred to undisclosed international accounts.
Broader Implications for Spain’s Crypto Landscape
The case has reignited debate over crypto regulation and investor protection in Spain. Lawmakers are calling for tighter oversight of online investment platforms and influencer-led promotions, areas that have become fertile ground for unregulated schemes.
With the Madeira Invest Club collapse now joining a growing list of European crypto scandals, authorities are expected to push for stronger cooperation across EU member states to combat cross-border financial crimes tied to digital assets.
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