Spanish authorities have dismantled one of Europe’s largest crypto-related Ponzi schemes, centered around the Madeira Invest Club. The club promised investors high annual returns—up to 20%—by marketing itself as an elite private investment group specializing in cryptocurrencies, luxury assets, gold, real estate, and digital art. In reality, no genuine investments were made; instead, new deposits funded payouts to earlier investors.

The operation, orchestrated by Spanish national Álvaro Romillo, known online as “CryptoSpain,” exploited slick marketing, social media endorsements, and the allure of “guaranteed passive income” to lure more than 3,000 victims from Europe and Latin America. The scheme ultimately moved over €260 million across a web of offshore shell companies and bank accounts spanning Europe, Asia, and the Americas.

Law enforcement from Spain, Europol, the United States, and several Asian jurisdictions collaborated in a year-long investigation that traced funds through international crypto wallets and uncovered a Singaporean account holding €29 million in investor money. The sophisticated network enabled Romillo’s group to evade detection for months, highlighting the challenges of cross-border fraud in the digital asset sector.

The case also exposed systemic regulatory gaps, as fraudulent ventures took advantage of inconsistent oversight across different countries. Authorities are now urging stronger safeguards, more robust investor due diligence, and improved clarity for both retail and institutional crypto investors.

Romillo has been detained without bail, facing charges of fraud, money laundering, and criminal conspiracy. While prosecutors work to recover stolen assets, the fallout from the Madeira Invest Club demonstrates the critical need for transparent, regulated investment platforms and more vigilant monitoring of crypto-related schemes.