Altcoin News: Brazil Has Closed a Crypto-Fraudulent Scheme, Attracting $210 Million from 55,000 Investors

May 22, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

In Brazil, 10 people suspected of organizing a cryptocurrency pyramid were arrested, the losses from which are estimated at 850 million reais ($210 million).

According to a local media report, the criminal cartel ruled a financial structure that did not have registration with the Central Bank of Brazil. Fraudsters offered cryptocurrency products with a promised ROI of 15%.

The operation of the scheme was interrupted during the joint operation of the Brazilian federal police and the tax authority. In total, during the operation, 25 search and confiscation orders were issued in eight Brazilian cities.

As police explained — investment in cryptocurrency is not a prohibited activity in the state: The problem with this company was that it operated without authorization.

After the end of the operation, the authorities found out that the group had not invested in cryptocurrency at all. Instead, its members spent their money on luxury cars, real estate, and more. A total of about a dozen real estate objects, 36 vehicles and an unnamed amount of money were seized from them.

The investigation into the discovery in the actions of the detainees of signs of fraud in the process of asset management, misuse of funds, money laundering and the organization of the criminal scheme continues.

Author: Marko Vidrih