Judge Rules Against Álvaro Romillo Castillo
A judge from Spain’s High Court has ruled that Álvaro Romillo Castillo, a well-known figure in the cryptocurrency world often referred to as “Cryptospain” or “Luis Crypto”, must remain in custody without a chance for bail. This ruling comes amidst serious allegations that he masterminded a pyramid scheme, which reportedly deceived investors out of approximately $300 million.
Concerns Over Flight Risk
Law enforcement is particularly concerned about Romillo’s potential to flee the country after discovering recent suspicious financial transactions that suggested he might attempt to escape from the investigation.
Connection to Political Campaigns
Romillo, who was apprehended by the Civil Guard’s Central Operative Unit (UCO) on November 6, has been linked to a controversial financing effort for the European election campaign of Luis Pérez, head of the far-right party Se Acabó La Fiesta (SALF). The judge’s decision to keep him in provisional detention reflects the belief that he poses a significant risk of not appearing for his court hearings, particularly the one scheduled for the upcoming Friday.
Investigation and Allegations
As the investigation continues, Spanish authorities, in conjunction with the Tax Agency, have traced around $33.5 million in funds transferred overseas, indicating potential financial misconduct. Romillo has been charged with serious offenses, including fraud, conspiracy, and money laundering.
Details of the Scheme
His schemes allegedly involved the Madeira Invest Club (MIC), which was labeled a “financial boiler room” by Spain’s National Securities Market Commission (CNMV). The MIC purportedly promised investors guaranteed annual returns of 20% by targeting high-value assets, including luxury items like virtual art and vehicles.
Defense and Inconsistencies
Authorities allege that Romillo misappropriated these investments for personal gains, rather than the ventures he initially proposed. In his defense during questioning, he claimed he had plans to reimburse the approximately 2,700 investors affected by his actions and asserted that he had already compensated a number of them in cash. However, he failed to provide proof of these claims, leading to skepticism about his statements due to inconsistencies regarding his lifestyle and assets.
Conclusion
The judge concluded that Romillo leveraged his internet fame to operate a fraudulent fundraising enterprise from January 2023 to September 2024, diverting the funds raised for personal enrichment. Multiple prosecution factions have supported the prosecutor’s call for Romillo’s immediate incarceration, emphasizing the severity of the charges against him.
