Why the Brazilian ‘king of Bitcoin’ is facing fraud | Ticker VIEWS

Brazil busts its ‘king of Bitcoin’

Authorities arrest Claudio Oliveira for embezzling cryptocurrency

Oliveira is the leader of Brazil’s Bitcoin Banco Group. Even though he calls himself the “King of Bitcoin,” he’s facing a 300 million dollar fraud job.

The Brazilian Federal Police launched the three-year investigation into Oliveira.

In 2019, the Banco Group reported 7 thousand bitcoin had gone missing. Client withdrawals from the group’s brokers also ceased, sparking an investigation.

After that point, the group filed for a judicial recovery. This is basically a type of exemption allowing a group to pay creditors without filing for bankruptcy. Of course, this was a lie.

A Brazilian police press release says around 90 federal police officers in Curitiba and Brazil were involved in Operation Daemon.

The fraud allegedly harmed thousands of investors

It comes after another recent Bitcoin disappearance.

The founders of a South Africa-based crypto investment firm disappeared along with 69,000 bitcoins – worth an estimated $3.6 billion.

The entrepreneur, who set up the service with his brother, said he is currently in hiding due to death threats.