Brazilian police arrest Bitcoin King on 7,000 BTC scam – brinkwire

The Brazilian police have arrested the Bitcoin king for a 7,000 BTC fraud. He was charged with money laundering and fraud following a $ 250 million BTC scam.

Brazilian police arrested the Bitcoin king for a 7,000 BTC scam

Brazilian authorities have arrested the chairman of the Bitcoin Banco Group – Claudio Oliveira. Accordingly, he is responsible for withdrawing 7,000 bitcoins from customers today, valued at $ 250 million.

In a recent online press release, Brazilian officials announced the arrest of Claudio Oliveira. He heads the Bitcoin Banco Group – a company that promises high returns to its customers who invest in it.

After a three-year investigation, federal police proved the company had defrauded thousands of customers out of at least $ 250 million.

The first signs of fraud appeared in 2019 when 7,000 bitcoins disappeared, leading to the opening of the case. The Banco Bitcoin Group, in turn, has filed for a judicial reinstatement order – a financial ploy the company can use to avoid bankruptcy.

In the meantime, the company has not stopped providing services to its customers and has not established why the property has been lost. In addition, the exchange has released an updated version of its platform, claiming that the tokens have disappeared there.

The federal police organized a team of 90 officers and launched a thorough investigation in Curitiba and the metropolitan area under the name “Operation Daemon”.

It exposed the fraud scheme and arrested the head of the fraud – Claudio Oliveira, after concluding that he had transferred bitcoins in his personal wallet.

Brazilian authorities have confiscated many properties from the so-called “Bitcoin King” as well as large amounts of cash, luxury cars and crypto hardware wallets. Oliveira will soon face a range of charges including fraud and money laundering.

As CryptoPotato reported late last year, the U.S. Department of Justice helped shut down a massive pyramid scheme that confiscated more than $ 25 million in cryptocurrency owned by criminals.

In a joint initiative called Operation Egypt, the Brazilian authorities and their American counterparts aim to end a more than $ 200 million fraud that has been widespread in Brazil since its inception in 2017 and affects thousands of victims.

The Justice Department said that Marco Antonio Fagundes – one of the masterminds behind the whole operation – was not complying with Brazilian regulations as a financial services provider. In addition, it offers a high return on investment for those who rely on crypto products.

Similar to the case with the “Bitcoin King” mentioned above, the authorities confiscated not only digital assets but also luxury cars such as Ferraris, Porsches and BMWs after the case was resolved.

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