Tuesday, October 20, 2020

Brazilian police dismantle fraudulent bitcoin investment scheme that raised $359 million

-

According to the Paraná state government, civil police in the state raided an unnamed organization in Sao Paulo, Curitiba and other regional cities last Thursday, claiming the group promised as many as 5,000 victims that they could produce sky-high returns on bitcoin investments

Scammers targeted their network of victims through social media. After the victims sent funds, the suspects told them to wait as their investments grew three to four percent daily. But victims were not allowed to withdraw, the police alleged, and their money disappeared. 

The four-month investigation culminated Thursday when police filed charges of fraud, money laundering, criminal association and forgery against the group. They arrested nine individuals in a SWAT operation that involved 50 officers, 20 vehicles and a helicopter. 

Previously, Brazilian government officials have used bitcoin for illicit purposes too. In 2018, police busted a $22 million operation that siphoned funds from a prison budget and laundered them through the cryptocurrency. 

- Advertisement -

The country’s government is no fan of bitcoin – whether used criminally or not. President Jair Bolsonaro bad-mouthed bitcoin on national TV in June while simultaneously stating he “doesn’t know” what it is, and former chief central banker Ilan Goldfajn compared it to a “pyramid scheme” during his tenure.

 

- Advertisement -
- Advertisement -

MUST READ

Goldman to pay over $2 billion in DOJ’s 1MDB Probe

Goldman Sachs Group Inc. has reached a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion for the bank’s...

Ex-managers of Security firm pleads guilty in Santa Clara County concealed gun permit bribery scandal

Two former managers of a Silicon Valley international security firm pleaded guilty Monday to charges related to a bribery scheme to obtain concealed firearms...

Ohio former House Speaker Larry Householder to stand for reelection amid bribery charges

Republican Rep. Larry Householder’s name will be on the ballot Election Day as the disgraced Ohio lawmaker intends to serve his district for another...

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...
Advertisement
Advertisement

Latest News

This Week

Rapper Nuke Bizzle charged with COVID-19 relief aid fraud after bragging in music video

A rapper who bragged about defrauding the government’s unemployment program in a music video has been arrested on federal charges of carrying out the...

German prosecutors fine Deutsche Bank $15.9m, drops money laundering probe

German prosecutors said on Tuesday they were dropping a money-laundering investigation against managers at Deutsche Bank DBKGn.DE, over its relations with Danske Bank's DANSKE.CO Estonian subsidiary, citing...

Police raids Czech Football Association, arrest vice-president in corruption probe

Czech police have detained 20 people including deputy Czech Football Association head Roman Berbr over alleged corruption and match-fixing following a nationwide raid, news...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks