Brazil's Bitcoin Banco Group and Leader Arrested for Alleged Embezzlement of $300M in Crypto

Federal Police in Brazil have arrested members and a leader of the Bitcoin Banco group for their alleged involvement in an embezzlement scheme.

In a press conference streamed live on Monday, police named businessman and self-proclaimed "Bitcoin King" Claudio Oliveira, as leader of the group.
The group is alleged to have embezzled R$1.5 billion (US$300 million).
Operation Daemon was conducted by around 90 federal police officers in Curitiba and the Metropolitan Region, according to a police press release on Monday.
The operation was based on intelligence gathered over a three-year investigation which alleges the group engaged in fraudulent scams and embezzlement.
In 2019, the group reported 7,000 bitcoin had gone missing and client withdrawals from the group's brokers ceased, sparking an investigation.
After which, the group filed for a judicial recovery – a type of exemption allowing an entity to pay creditors without filing for bankruptcy.
The fraud is alleged to have harmed thousands of investors.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.