Spanish authorities have arrested Álvaro Romillo, known online as CryptoSpain, a prominent crypto influencer, on charges of orchestrating a €260 million ($300 million) Ponzi scheme. Romillo was detained on Thursday after investigators linked him to a Singapore bank account containing €29 million allegedly connected to the operation. The National Court in Madrid ordered him held without bail following his two-hour testimony before Judge José Luis Calama, with prosecutors citing his potential flight risk given the size of the overseas funds involved. 3,000 investors reportedly lost money after being promised high returns by Romillo and his investment group, Madeira Invest Club (MIC), using promises of luxury asset investments that never materialized. Authorities seized a number of luxury vehicles and assets linked to the scheme, including Ferraris and real estate. The case is one of Spain’s largest crypto-linked frauds to date and could result in up to 18 years in prison if classified as a mass offense. Romillo reportedly claimed he intended to repay investors but only made partial payments using cash without proper documentation. The investigation began in late 2024, after three formal complaints were filed against MIC in October of that year, prompting authorities to launch a probe into Romillo’s offshore activities. He initially cooperated with the investigation until evidence linking him to foreign bank accounts emerged, raising concerns about potential flight risk. The investigation is exploring his ties to political funding, as he admitted donating €100,000 in unreported cash to the 2024 election campaign of Luis “Alvise” Pérez, leader of the SALF party. While this case remains distinct from the MIC fraud probe, the investigation’s focus has drawn attention to the blurred lines between investment promotion, political financing, and financial crime within Spain’s rapidly developing crypto market. The National Securities Market Commission (CNMV) has taken steps to tighten regulations on social media influencers promoting high-risk crypto investments since 2023. The Romillo case could test Spain’s updated fraud statutes concerning tokenized assets and digital investment schemes, potentially leading to further investigations into other entities connected to MIC’s network across Europe and Asia. Romillo remains in custody pending formal charges and asset recovery proceedings, with a court date yet to be set. Investors impacted by the scheme are seeking legal recourse to recover their losses through associations formed to support them.