There is a principle in the world of investments: if it looks too good, it’s either a lie or a scam. No one will give you astronomical returns without paying a single penny to the exchequer and without maximum risk. That is exactly what happened with Madeira Invest Club (CryptoSpain) which gave 53% returns and which has now disappeared overnight.
This Monday, completely surprising its users, the service was shut down. The Telegram channel he used to communicate with his community appears to be inactive, its offices closed and telephone numbers non-functional. On its website, only the email address legal@madeirainvestclub.com is provided so that investors can request a refund of their investment.
The National Court announced this Tuesday that it is opening an investigation process into an alleged cryptocurrency scam run by this financial club that promised great returns on investments in digital art and luxury products.
Investments in watches, real estate or luxury cars
The club is mainly managed by Telegram and it has Alvaro Romillo, alias Luis or CryptoSpain, as its public image through social networks. Through a subscription of 2,000 euros per year, it guarantees that its users can legally avoid the treasury and live without paying taxes in compliance with all regulations.
“It always offers investments in watches, luxury cars or real estate with a double payment: first they have to get a membership card and pay the cost of investing in cryptocurrencies,” explains Sergio Carrasco, a lawyer specializing in technology law. In total, it is estimated that CryptoSpain handled around 300 million euros with this practice, causing investors to lose million-dollar assets with false promises.
“Advisor” without legal authority
The danger is not new. The National Securities Market Commission (CNMV) designated Madeira Invest Club as a “financial beach bar” in May 2023, acting as an “advisor” without the Commission’s approval. “This notice contemplates that Madeira Invest Club is not authorized to provide investment services. For this purpose, includes investment advice regarding the instruments considered in Article 2 of the said law, including currency operations,” Carrasco details.
In total, the club is estimated to have more than 5,000 affiliated students, with a paid membership of about 3,000. “This approach follows the patterns of other pyramid schemes. Part of the returns received by the first investors are generated from the second investment. Romillo is the only big beneficiary.” Some investors were able to collect their rewards, but most were stuck in non-existent investments.
ALWAYS RELATIONSHIP WITH CRYPTOSPAIN
In this pyramid scam, it has now come to light that MEP Luis Perez Fernandez, popularly known as Alvis, of the Say Acabo La Fiesta party, is linked to CryptoSpain. An association of cryptocurrency users filed a complaint at the National Court last Friday over the sudden closure of the financial club, requesting an indictment of Alvis this Wednesday after Romillo informed the prosecutor’s office that he had offered him 100,000 euros in cash. To finance his election campaign to run for the European Parliament.
“CryptoSpain provided a series of messages with Always to cooperate with the prosecutor’s office and reduce his criminal responsibility, where the MEP requested, among other things, financing,” explained the lawyer. For now, Carrasco also points out, those are the only documents submitted by an interested party, and they must be verified by the prosecutor’s office.
It should be recalled that during a presentation last April, Alves also referred to the Spanish tax system as “modern slavery”. Encouraging investors to seek alternative methods to protect their assets and avoid traditional taxes. This discourse attracted people interested in avoiding traditional investment mechanisms. An appeal to general frustration with the tax system.
