In Brazil, the King of Bitcoin loses his crown

A Big Figure Falls – Crypto news in Latin America has been hot since El Salvador endorsed Bitcoin as a legal tender. Unfortunately, the news isn’t always good. In fact, Cláudio Oliveira, the former president of Grupo Bitcoin Banco, has been arrested by Brazilian authorities. The man is facing a charge of embezzling 7,000 bitcoins (BTC).

The fall of the king after a 3-year siege

Brazilian federal police have arrested the former president of Grupo Bitcoin Banco, Cláudio Oliveira, known as Brazil’s “Bitcoin King,” along with other members of the company.

Authorities announced at a July 5 press conference that the businessman is accused of, among other things, leading a scheme to embezzle about 1.5 billion Brazilian reals ($300 million) in BTC, which allegedly victimized more than 7,000 people.

This denouement is the result of Operation Daemon, a 3-year investigation conducted by about 90 agents in Curitiba and the metropolis. A 3-year investigation traced an irregular transfer of funds from Grupo Bitcoin Banco clients to Oliveira’s personal accounts. The company, meanwhile, is accused of money laundering, fraud and swindling.

Authorities confiscated several assets belonging to Oliveira during his arrest. Luxury cars, cash and cryptocurrency wallets were seized. Information provided by foreign agencies confirms that the accused has already been investigated in the US and Europe for similar crimes.

L’attribut alt de cette image est vide, son nom de fichier est CTA-achat-Bitcoin-BTC-trop-tard.png.

A problem solved, only in appearance

Grupo Bitcoin Banco had gained popularity during the previous Bitcoin bull run in 2017. At the time, it had promised large returns to customers who entrusted it with their bitcoins. The company had then reported 7,000 missing BTC in 2019. After this report, it had requested a judicial recovery order, which had been accepted by the Brazilian authorities. This agreement had allowed Grupo Bitcoin Banco to reorganize its finances and management to pay its creditors and thus avoid bankruptcy.

See also  Blockchain Service Network (BSN) now also represented in South Korea

Was there really an internal reorganization that proved the company’s good faith? Grupo Bitcoin Banco has coThe company continued to provide its services, without giving a clear explanation for the disappearance of BTC. It simply updated its platform and reassured its customers that the missing bitcoins were still there. The clients’ lawyer had pointed out the inconsistencies between the amounts declared by the company and those provided by the audits.

Investing in Bitcoin without understanding anything about it to begin with and learning on the job? Why not if the amounts involved are relatively small. However, apprentice Bitcoiners should keep in mind that the best way to profit from a decentralized cryptocurrency, such as Bitcoin, is to keep full control of it, not to hand it over to a third party who promises great things.

Bitcoin and crypto lover? There is a limited offer these days to get up to €300 in cryptocurrencies for free (subject to a minimum deposit of €150)! Take advantage of this offer, while supporting the work of Le Journal du Coin by using this affiliate link to sign up on the Swissborg reference platform (see conditions of the offer on the official website).