- Álvaro Romillo Castillo was arrested for running a crypto pyramid scheme affecting over 3,000 people.
- The scheme raised approximately $300 million by promising 20% annual returns.
- Castillo admitted to funding far-right politician Luis “Alvise” Pérez Fernández’s 2024 campaign with $115,000.
- The investment club operated through digital art purchase contracts backed by false profit guarantees.
- Spanish authorities found international shell companies involved, and Castillo claimed to have returned most funds to victims.
Spanish authorities arrested Álvaro Romillo Castillo, known as “Cryptospain,” on Thursday for allegedly leading a cryptocurrency pyramid scheme that defrauded more than 3,000 people of about $300 million. He was denied bail due to being considered a flight risk ahead of a court appearance scheduled for Friday.
The scheme was operated through the Madeira Invest Club, which marketed itself as a private investment group. It promised fixed 20% annual returns by investing in assets like real estate, premium whiskey, luxury cars, yachts, Gold, and cryptocurrencies. Investor money was reportedly formalized via digital art purchase agreements, which the club guaranteed to buy back at predefined profits.
The Spanish Civil Guard’s investigation revealed that the Madeira Invest Club was a pyramid scheme. It used funds from new investors to pay earlier participants rather than generating genuine returns. Authorities estimate the number of victims exceeded 3,000, though Castillo told the court he returned money to most of the 2,700 investors directly linked to the scheme.
It was also reported that Castillo confessed to paying $115,000 to finance the 2024 election campaign of right-wing politician Luis “Alvise” Pérez Fernández. The Spanish Public Prosecutor’s Office is investigating Fernández, alleging he sought guidance from Castillo on creating cryptocurrency wallets to accept anonymous donations outside regulatory oversight. Fernández, who launched the anti-immigration party “Se Acabo La Fiesta” in October, previously secured three seats in last year’s elections.
The operation allegedly involved a network of shell companies and bank accounts in countries including the United Kingdom, the United States, Singapore, Albania, Portugal, and Thailand. Castillo admitted to having no formal financial training and said his aim was to avoid taxes in Spain. Spanish tax authorities had detected Castillo transferring up to $33 million abroad before his arrest.
For further details, see the official statement by the Ministry of the Interior and coverage in El País.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Strategy Raises $715M via Euro-Denominated Preferred Shares for BTC
- Bitcoin Falls Below $100K, Retail Sentiment Sours Amid Selloff
- Bitcoin Falls 20% in a Month, Enters Bear Market Territory
- Bitcoin Faces $100K Pressure Amid Liquidity Games, Signs of Recovery
- BRICS Central Banks Buy 20 Tons Gold Worth $2.54B in Sept 2025
