Brazilian ‘King of Bitcoin’ Busted for Alleged $300 Million Fraud

In short

  • Cláudio Oliveira was arrested in Brazil.
  • Authorities additionally confiscated money, automobiles, and crypto wallets.

Brazilian Federal Police have dismantled a cryptocurrency scheme that allegedly skimmed at the very least 1.5 billion Brazilian reais (about $300 million) from over 7,000 victims.

After an almost three-year investigation, authorities have been in a position to collect sufficient proof to arrest Cláudio Oliveira, higher often known as “The Bitcoin King.” Oliveira served as president of the Bitcoin Banco Group, a well-liked finance agency that made its title throughout a cryptocurrency growth by promising extraordinary income for individuals who trusted it with their funds.

On the finish of 2019, Bitcoin Banco Group reported the disappearance of seven,000 Bitcoins and utilized for a judicial recovery order—a particular association agreed to by Brazilian authorities wherein the corporate reorganizes its funds and administration in order that it could pay collectors and keep away from chapter.

Throughout this time, nonetheless, the corporate continued to offer its standard companies whereas failing to clarify the explanations behind the disappearance of tokens. As an alternative, it introduced an up to date model of its platform, assuring shoppers that the tokens have been there. In line with a lawyer performing on behalf of Bitcoin Banco shoppers, there were inconsistencies between the quantities expressed by the corporate and what audited knowledge confirmed. The agency additionally failed to offer pockets knowledge that might clear up the difficulty.

Whereas all this was taking place, the Federal Police arrange a process power of 90 officers to research the Grupo Bitcoin Banco. “Operation Daemon” concluded that funds from the group’s shoppers have been irregularly diverted to the non-public accounts of Oliveira.

Along with arresting him, the Federal Police confiscated a number of property owned by Oliveira, together with luxurious automobiles, massive quantities of money, and cryptocurrency arduous wallets.

Police have pressed cash laundering, fraud, and different costs in opposition to the Group Bitcoin Banco and Oliveira.

Intelligence exchanges between the Federal Police and international companies have confirmed that Oliveira has beforehand been beneath investigation in the USA and Europe for related crimes.

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