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Bitcoin Banco Group Leader Arrested for $300M Crypto Fraud

Bitcoin Banco Group Leader Arrested for $300M Crypto Fraud
  • Brazilian “Bitcoin King” under arrest for a $300 million crypto scam.
  • The Brazilian police made the arrest after a three-year investigation.
  • Also, the police made four other arrests related to the incident.

Brazilian authorities arrested Claudio Oliveira, leader of the Bitcoin Banco group. Police arrested the self-proclaimed “Bitcoin King” in connection with a $300 million embezzlement scheme.

According to an official police press release, the arrest was made after a three-year investigation. The operation code-named Daemon involved over 90 federal police officers. Also, the investigation revealed that the group engaged in scams and theft. Notably, the police opened the investigation after the group suspended client withdrawals and reported that 7,000 BTC had gone missing.

In addition, the group filed for judicial recovery in an attempt to avoid filing for bankruptcy. However, authorities soon discovered that the group was not meeting its obligations under judicial recovery. Instead, the group was focusing on attracting new clients. Thus, the group was acting without registering or complying with Brazilian regulations.

Also, the investigation revealed that Oliveira had committed similar crimes in the US and possibly some European countries. The investigation also exposed some of the “Bitcoin King” accomplices. As such, apart from Oliveira the Brazilian police also made four temporary arrests, twenty-two searches, and several seizure warrants. 

Prior to this, Brazil has been relatively crypto-friendly. In fact, the country launched the first South American crypto exchange-traded fund (ETF) earlier this year. The ETF is Bitcoin-based and on the Brazilian Stock Exchange B3.

However, the arrest comes at a time when world governments are tightening regulations for crypto business. So far, popular crypto exchange Binance has fallen victim to several complaints. Most recently, Thailand filed criminal charges against the Binance exchange for operating in the Asian kingdom without a license.

Other countries that have flagged Binance for non-compliance include the Caymen Islands, the UK, Canada, and Japan.

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Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.