Bitcoin King News: Claudio Oliveira, better known as the “Bitcoin King,” has been charged with money laundering and fraud following a $250 million BTC scam.
Brazilian authorities have arrested Bitcoin Banco Group chairman Claudio Oliveira. He is responsible for stealing 7,000 Bitcoins from customers worth $250 million.
‘Bitcoin King’ Caught
In a recent press release, Brazilian authorities reported the arrest of Claudio Oliveira. He is in charge of Bitcoin Banco Group, a company that promises high returns for clients investing in Oliveira Bitcoins.
After a three-year investigation, the Federal Police proved that the company stole at least $250 million from thousands of customers.
The first signs of fraud appeared in 2019 when 7,000 Bitcoins disappeared, which led to the lawsuit being filed. In response, Bitcoin Banco Group has filed for a judicial bailout. A financial trick with which the firm can avoid bankruptcy.
Meanwhile, the company hasn’t stopped serving its customers, and hasn’t been able to explain why the assets were missing. Also, the exchange revealed an updated version of its platform and claimed that the lost tokens were there.
The Federal Police assembled a team of 90 and launched a comprehensive investigation in Curitiba and the Metropolitan Area under the name “Operation Daemon”.
He exposed the scam scheme and arrested the head of the scam, Claudio Oliveira, after concluding that he had transferred the Bitcoins to his personal wallet.
Brazilian authorities confiscated large amounts of cash, luxury cars and cryptocurrency wallets, as well as a large number of assets dubbed the “Bitcoin King”. Oliveira will soon be tried on various charges including fraud and money laundering.
‘Operation Egypt’ – Brazil’s biggest pyramid scheme
As CryptoPotato reported late last year, the United States Department of Justice has helped close a great pyramid scheme by seizing over $25 million in cryptocurrencies held by criminals.
Brazilian authorities and their American counterparts, in a joint venture called “Operation Egypt”, aimed to end a fraud worth more than $200 million that has enjoyed high popularity in Brazil since its inception in 2017, affecting thousands of victims.
The Ministry of Justice announced that Marco Antonio Fagundes, one of the brains behind the entire operation, failed to comply with Brazilian regulations as a financial services provider. It also offered high return on investment to those who bet on cryptocurrency products.
Similar to the aforementioned case regarding the “Bitcoin King”, the authorities confiscated not only their digital assets but also luxury cars such as Ferrari, Porsche and BMW after they settled the case.