Spanish investigators have taken down what they describe as one among Europe’s largest crypto-related scams, arresting alleged ringleader Carlos Romillo, who’s accused of orchestrating the Madeira Make investments Membership – a community that promised extraordinary annual returns of as much as 20% to traders throughout Europe and Latin America.
Behind the polished picture of an unique monetary membership, the operation functioned as a Ponzi scheme, recycling new deposits to pay older members. Authorities consider over 3,000 individuals had been duped, collectively shedding greater than €260 million ($300 million). Many victims had been retail traders drawn in by slick advertising campaigns, social media endorsements, and guarantees of “assured passive earnings.”
Romillo’s arrest by Spain’s Central Operational Unit (UCO) follows a year-long investigation tracing funds by way of a posh net of offshore accounts and crypto wallets. A single Singaporean account tied to the group reportedly held €29 million from investor funds.
The case took a political flip when investigators uncovered a €100,000 donation from Romillo to European Parliament member Luis “Alvise” Pérez, elevating suspicions of influence-seeking.
Spain’s Audiencia Nacional court docket has ordered Romillo’s detention with out bail, citing the scope of the fraud and the danger of additional asset concealment. Prosecutors are getting ready costs for fraud, cash laundering, and felony conspiracy, whereas the Civil Guard works to get well any traceable funds.
The scandal has reignited debate over crypto regulation in Spain, with lawmakers urging stricter oversight of influencer-driven promotions and unlicensed funding networks. With digital scams on the rise throughout Europe, the Madeira case is more likely to speed up EU efforts to tighten cross-border enforcement within the crypto house.
