European Ponzi Scheme Unraveled: Madeira Invest Club’s €260M Crypto Fraud Leads to Arrest
Spanish authorities have dismantled one of Europe's largest cryptocurrency fraud operations, arresting Carlos Romillo, the alleged mastermind behind Madeira Invest Club. The scheme promised investors annual returns of up to 20%, but functioned as a classic Ponzi structure—using new deposits to pay earlier participants.
Over 3,000 victims across Europe and Latin America lost more than €260 million. Retail investors were lured by sophisticated marketing campaigns and social media promotions touting "guaranteed passive income." Investigators traced funds through offshore accounts and crypto wallets, including a Singaporean account holding €29 million in stolen assets.
The case took a political dimension when a €100,000 donation from Romillo to European Parliament member Luis Pérez surfaced, suggesting potential influence peddling. Spain's Audiencia Nacional court has ordered Romillo detained without bail, citing the massive scale of the fraud.
