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 inbox
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Featured Image: Shutterstock/Bruno Passigatti