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

The operation was carried out on intelligence gathered over a three-year investigation into alleged fraud and and embezzlement scams.

AccessTimeIconJul 6, 2021 at 2:03 a.m. UTC
Updated Sep 14, 2021 at 1:21 p.m. UTC

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.

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