Leader of Brazilian Bitcoin Banco Group Arrested and Accused of $300 Million Bitcoin Fraud

In the wake of supposed embezzlement in 2019, the Brazilian Federal Police have arrested the leader and members of Bitcoin Banco. The group is linked to the disappearance of over 7,000 Bitcoins belonging to investors. Bitcoin Banco Group allegedly functioned as a broker and promised investors high return on investments. 

The case which took the police almost three years to complete investigations was recently concluded, leading to the arrest of Claudio Oliveira, popularly known as “Bitcoin King”. The investigation was carried out by a group of 90 officers and was code-named “Operation Daemon”. 

Bitcoin Banco announced the disappearance of 7,000 BTC in the last quarter of 2019. It applied for a Judicial Recovery Order so it can legally work to restore client funds without risking bankruptcy. However, the group didn’t give proper information on the whereabouts of the digital assets, these inconsistencies led to the investigation and finally, to the clampdown. 

Charges placed against Oliveira and Banco include fraud and money laundering. Foreign agencies confirm that the accused has been on their watch list for a while now. Oliveira’s luxury automobiles, crypto wallets, and strings of cash were confiscated during the period of his arrest. 

The Rise of Crypto Scams

The Bitcoin Banco Group scam is just one amongst many. Several reports have been made of Ponzi schemes and brokers making away with millions or billions in investor funds. These schemes capitalize on the ignorance and greed of investors to scam them. 

Just like the Brazilian “Bitcoin King”, the Financial Action Task Force (FATF) also captured the Indian “Crypto King” about drug offenses facilitated by cryptocurrencies. 

South Africa has seen quite a good number of these Ponzi platforms thriving without restrictions. Notably the case of the MTI scam and the recent Africrypt saga which carted millions and billions of USD respectively. 

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