Fake Cryptocurrency Scammed 55,000 investors for over $200 million
The cryptocurrency crime cartel has been shut down after more than 55,000 investors were conned for more than $ 200 million. Brazilian police arrested 10 people suspected of operating an $ 850 million ($ 210 million) pyramid cryptocurrency scheme. This was reported by local media such as Correido Do Povo on May 21st.
As part of the Egyptian operation, to unveil unapproved financial schemes, the Brazilian tax authorities, together with the police, organized a crackdown against the figures on which the transaction was based and raised funds from 55,000 investors.
They attracted victims with the promise of a 15% payment the first month after investing in the crypto scheme.
In total, the investigation involved 13 individuals and five legal entities.
“The problem with this company is that it was acting without the authorization,” Correido Do Povo quotes Delegate Eduardo Dalmolin Boliis of the federal police’s Office of Corruption and Financial Crimes as saying.
On the basis of a traditional financial pyramid, seizures of the assets of those involved showed that the company could not honor all the withdrawals of its investors at the same time.
They also invested in luxury goods, including 30 cars and gems, which were subsequently confiscated.
The news comes in the same week when the United States is acting against a Ponzi scheme linked to a cryptocurrency allegedly backed by diamonds. In this case, the network operators would have persuaded domestic and foreign customers spend about $ 30 million over several years.
The use of cryptocurrency is not illegal in Brazil. Police are trying to repeat the impetus for the raid on the contracts, which is based on the lack of legality of the company.