The ‘King of Bitcoin’ from Brazil arrested for suspected $300 million fraud.
Cláudio Oliveira ‘King of Bitcoin’ was the president of Bitcoin Banco Group. It is a Brazilian financial management firm that reported the missing 7,000 BTC back in 2019.
The Brazilian Federal Police have disrupted a cryptocurrency scheme. That purportedly stolen at least 1.5 billion in Brazilian reais – approximately $300 million – from more than 7,000 victims.
After an investigation that went for three years, authorities have been able to gather sufficient evidence to arrest Claudio Oliveira. H’s alias is “The Bitcoin King.” Oliveira served as the president of the Bitcoin Banco Group. It is a famous finance firm that made its name amidst the cryptocurrency boom. He made this by assuring extraordinary profits for those who put their trust in them.
The Bitcoin Banco Group
By the end of 2019, Bitcoin Banco Group reported the disappearance of roughly 7,000 Bitcoins. They then applied for a judicial recovery order. It is a special arrangement by the Brazilian authorities where the company reorganizes its finance and administration so that it can pay the creditors and evade bankruptcy.
During this time, however, the company continued to provide its usual services while failing to explain the reasons behind the disappearance of tokens. Instead, it presented an updated version of its platform, assuring clients that the tokens were there. According to a lawyer acting on behalf of Bitcoin Banco clients, there were inconsistencies between the amounts expressed by the company and what audited data showed. The firm also failed to provide wallet data that could clear up the issue.
While all this was happening, the Federal Police have set up a task force of around 90 officers to investigate the Grupo Bitcoin Banco. “Operation Daemon” has concluded that the funds from the group’s clients were diverted irregularly to Oliveira’s personal accounts.
Aside from arresting him, the Federal Police have confiscated a lot of assets owned by Oliveira. This includes luxury cars, large amounts of cash, and cryptocurrency hard wallets.
Police charged Oliveira and the Bitcoin Banco Group with money laundering, fraud, and other charges.
Intelligence exchanges between the Federal Police and foreign agencies confirmed that Oliveira has been under investigation previously in the United States and Europe for the same crimes.
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