Brazilian Federal Police say they’ve recovered more than $27,600,000 in Bitcoin (BTC) following a series of alleged Ponzi schemes run by one company.
A Rio de Janeiro-based company headquartered in the region of Lagos was allegedly operating a system of financial Ponzi schemes and used Bitcoin to steal from its victims.
In a plan dubbed “Operation Kryptos,” the police arrested five individuals connected to the Ponzi scheme, according to an official statement from Brazilian authorities.
Along with the five criminals, authorities carried out 15 search warrants and seized 591 Bitcoin, worth $27,682,085 at time of writing.
Beyond cryptocurrency, about $2.6 million in cash, 21 luxury vehicles, high-value watches, jewelry, various electronics, and other documents were recovered.
Brazilian authorities say that those who participated in the frauds will be criminally charged and could serve up to 26 years in prison.
“The investigated may respond, to the extent of their responsibilities, for the crimes of fraudulent/reckless management [of a] clandestine financial institution, illegal issuance of securities without prior registration, criminal organization and money laundering, and, if convicted, may serve a sentence of up to 26 years of confinement.”
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxFollow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Bruno Passigatti
