Brazil Court Orders “Bitcoin Pharaoh” To Pay Back Clients

A federal court judge in Rio de Janeiro has ordered Brazil’s so-called “Bitcoin Pharaoh” Glaidson Acácio dos Santos to pay 19 billion Brazilian reais (nearly $3.7 billion) to a business court to compensate investors and creditors who lost money in a Ponzi scheme in which his company allegedly participated.

Dos Santos had 72 hours following the September 19 ruling to deposit the monies, according to the Brazilian daily O Globo and its sister outlet G1.

According to sources, the business owner has been ordered to deposit the cash with a business court, where it will be distributed among creditors and investors who conducted business with Dos Santos’ firm, G.A.S. Consultoria e Tecnologia. The debts would only be reimbursed to creditors if the corporation could demonstrate its legal origin.

Dos Santos, a former waiter, has been imprisoned on allegations relating to Operation Kryptos, an alleged pyramid scam. Brazil’s federal police said in August 2021 that it had confiscated 591 Bitcoins (valued at roughly $28 million at the time) as part of the operation, along with watches, jewelry, and papers.

More than 122,000 investors have registered on a G.A.S creditor website, with a total of $9 billion Brazilian reais sought so far. On September 15, the news site also stated that Dos Santos had been granted habeas corpus by a federal regional court.

It is uncertain if Dos Santos will pay the court-ordered sum. A regional election court in Rio de Janeiro unanimously rejected Dos Santos’ bid for a congressional deputy seat last week.

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