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Crypto Scam: Brazilian Police Seize 592 BTC

Brazil’s law enforcement agents have seized 592 BTC. It is the largest amount of seized BTC in the country’s history. The seizure was part of an arrest of alleged Ponzi scheme owners and promoters. The police also arrested five persons involved in the scheme, some expensive goods, and 22 luxury vehicles.

Brazilian Police Issue A Public Release

According to an announcement by the Brazilian police, those arrested were part of a Lagos-based company running crypto-based Ponzi schemes. They have been involved in multiple billion-dollar frauds, with over 50% of these fraudulent actions taking place last year.

Apart from some luxurious items seized, one of the arrested persons was known for promising 16% ROI to his investors. Part of the announcement states that bitcoin will be converted to cash and be presented in court as evidence. Brazilian police had to investigate more cryptocurrency frauds following the arrest of another fraudster using cryptocurrency as a front.

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Recently, when two siblings ran and defrauded investors earlier this year, they went to the extent of shutting up investors from reporting the case to law enforcement agents. The two siblings siphoned investors’ almost $3.7B and warned investors that reporting the issue to the authorities will prevent a quick recovery of the lost funds. Hence, the crypto ecosystem couldn’t even help these investors.

A Well-Planned Fraud

A couple of days following the incident, the founders were traced to the UK. The platform went offline, and the brothers didn’t return their calls. Following some deep investigation, it was revealed that the claim of a hack was a hoax as the hacked private wallet performed a typical transaction before the reported hack.

Some other investors took it upon themselves to hire professionals and help them track the movement of the stolen funds. Investigations conducted by several regulatory bodies and financial watchdogs confirm that the platform’s operation denoted that a money-laundering scheme.

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It observed that the 2-year old platform had already amassed more than $3.5B worth of assets. Also, the operators ensured that all investors signed an accord that excluded the platform from taking any risk should things not go as stated. Experienced crypto counsel, Darren Henekon, revealed that “we became suspicious when the company claimed to be mining more than 120,000 ether using local pcs. 

We couldn’t particularly believe this claim based on the country’s power supply and capabilities. Even though the young ones are willing to take risks with investment opportunities, particularly in virtual assets, they need to understand how to identify bogus claims.”

First Honduran Crypto ATM Launched

The leading consulting firm in Honduras has installed Honduras’ first crypto ATM. Users can use the ATM to buy BTC and eth using their local fiat. The company’s CEO remarked that his company’s main objective was to automate the process Hondurans can use to purchase digital currencies. 

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He further said that El Salvador’s legal bitcoin adoption impacts a wider cryptocurrency adoption in other countries, especially central and south America. However, the young CEO told the media that he looks forward to launching the country’s crypto exchange than he looked forward to installing the first crypto ATM.

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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