Claudio Oliveira, former head of Brazil-based crypto brokerage firm Bitcoin Banco Group, was arrested on Monday for embezzling $300 million worth of investors’ funds.
What Happened: According to a press release from Brazil’s federal police, authorities issued arrest warrants for Oliveira and several other executives associated with the crime, which dates back to 2019.
The Bitcoin Banco Group allegedly promised investors exorbitant daily returns on its platform before claiming that 7000 Bitcoin (CRYPTO: BTC) was stolen and it would be unable to pay back investors.
A leaked tax filing obtained by Cointelegraph revealed that Oliveira, the self-proclaimed ‘Bitcoin King of Brazil,’ owned over 25,000 Bitcoins worth $209 million at the time.
The Bitcoin Banco Group soon became the subject of 200 investor lawsuits, where it failed to provide evidence that the funds had been compromised as a result of a hack.
Oliveira now faces charges of bankruptcy crimes, embezzlement, money laundering, and operating a criminal organization in Brazil.
What Else: The strategy of claiming to be hacked while absconding with investor funds is not uncommon in the crypto space.
Recently, two South African brothers who founded crypto brokerage Africrypt disappeared with 69,000 Bitcoins after claiming the funds had been stolen from their platform.