Amnesia Ibiza was raided during the early hours of Monday morning, which resulted in the nightclub owner being arrested by authorities.
Owner Martin Ferrer has been accused of money laundering and was arrested along with three others, according to Diario de Ibiza.
The raid, which took place just after popular club night Cocoon had concluded, was carried out by agents of the Central Operating Unit (UCO) from the Guardia Civil, along with reinforcement from Team Organized Crime and Drug Enforcement Administration (Edoa), experts from the Tax Agency and trained dogs.
Although the raid was an operation carried out by local police and tax authorities, there is also a report by El Mundo stating that the raid could also be an anti-drug operation.
Officials and police have not been able to comment on the situation at this time.