The Brazilian Federal Police liquidated Bitcoin Banco Group, whose actions harmed more than 7,000 clients, with losses exceeding $300 million. Its leader Claudio Oliveira, known as the ‘Bitcoin King’, has been arrested.
The investigation lasted three years. Based on its findings, authorities gathered sufficient evidence to seize assets and detain the mastermind of the scheme.
During the 2017 bull market, Bitcoin Banco Group promised clients “incredible profits”.
In late 2019 the firm reported the disappearance of 7,000 BTC and filed for judicial recovery. This document suggests a соглашение о реорганизации with authorities to avoid bankruptcy.
Subsequently, Bitcoin Banco Group unveiled an updated version of its platform, claiming that control over the missing cryptocurrency had not been lost. The firm could not provide wallet data that could clarify the situation.
During the investigation, it emerged that employees of the organization systematically transferred client funds to Oliveira’s personal accounts.
The police charged money laundering and fraud. Authorities also found that the group’s leader was under investigation in the United States and Europe on similar charges.
Earlier in June, Indian authorities arrested Makrand Adivirkar, also known as the ‘crypto king’, on charges of using Bitcoin to buy drugs on the dark web.
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