Fun

$200 Million Brazilian Crypto Fraud Scam: The US Seizes $24 Million Worth of Digital Currencies

News Feed - 2020-11-06 02:11:50

$200 Million Brazilian Crypto Fraud Scam: The US Seizes $24 Million Worth of Digital Currencies


The United States Department of Justice (DOJ) says it has seized cryptocurrencies worth $24 million after receiving an official request from the government of Brazil. The seizure stems from an ongoing investigation into the $200 million cryptocurrency scam that may have defrauded tens of thousands of Brazilians. The authorities in Brazil say the scammers duped people by typically promising exaggerated returns and falsifying where the funds were invested. Criminal violations


In a statement, the DOJ says the U.S. acceded to Brazil’s request in line with the cooperation treaty signed between the two countries with respect to “Mutual Legal Assistance in Criminal Matters.”


Meanwhile, according to the DOJ statement, “the U.S. seizures were tied to Brazilian Marcos Antonio Fagundes’ alleged role in the scheme.” Fagundes and several unnamed accomplices have been “charged with several criminal violations of Brazilian law, including, among other offences, the operation of a financial institution without legal authorization.”


The statement adds that the accused also faces charges of “fraudulent management of a financial institution, misappropriation, and money laundering, as well as securities law violations.”


The DOJ statement provides a short summary of a Brazilian court’s findings against Fagundes and his accomplices. The statement says: During August 2017 to May 2019, Fagundes and other defendants solicited funds from prospective investors over the internet, sometimes in combination with telephone and other means, and held the funds received in a manner that subjected it to regulation as a financial institution under Brazilian law, with which Fagundes and the other defendants failed to comply.


The statement reveals that the “defendants solicited investors to give money to corporations they controlled, in the form of Brazilian currency or cryptocurrency, which the companies would then invest in a variety of virtual currency types.” False claims


However, as the Brazilian court found, “only a very small amount of funds were invested in cryptocurrencies as promised, and very little was returned to the investors.”


Meanwhile, the DOJ says U.S. authorities are now working in close cooperation with the Brazilian authorities and others to “restrain the virtual currency and preserve it for forfeiture proceedings pending in Brazil to compensate the investors victimized in this fraudulent investment scheme.”


The statement concludes that “the cryptocurrency firm holding the accounts cooperated with law enforcement authorities in executing this seizure.” Still, the statement does not give the name of the cooperating crypto firm.


What do you think of this cooperation between the two countries? Share your thoughts in the comments section below. SEC Changes Rules, Making Fundraising Easier for Crypto Firms REGULATION | 2 days ago Hong Kong Amends Crypto Law to Regulate All Exchanges REGULATION | 2 days ago Tags in this story Brazilian Law, Cryptocurrency, cryptocurrency fraud, department of justice, Law Enforcement, Marcos Antonio Fagundes, Money Laundering, Regulations, securities law violations, Virtual Currency


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Show comments

News Feed

How The Israel-Iran War Could Shake Crypto Prices, Explains Arthur Hayes
Este artículo también está disponible en español. Arthur Hayes, the co-founder and former CEO of BitMEX, published an essay titled “Persistent Weak Layer” on
ByBit to launch Notcoin trading and withdrawals next week
Helen Partz13 hours agoByBit to launch Notcoin trading and withdrawals next weekThe community is anticipating the trading launch of Notcoin, although no one knows its price at or after listing.4382 Total views10 Total sh
Boosting AI: Senators propose $32B investment plan for US tech growth
Amaka Nwaokocha1 hour agoBoosting AI: Senators propose $32B investment plan for US tech growthAfter months of meetings with industry experts and AI critics, four U.S. senators published what they say is a comprehensive r
Prashant Jha13 hours agoFBI flags 6 Bitcoin wallets linked to North Korea, urges vigilance in crypto firmsAlthough the likes of Lazarus Group have stolen billions of dollars worth of crypto, the public ledger technology
Bitcoin Dominance Increases, ETH’s Market Share Slides, Stablecoin and Smart Contract Coins Rise
Bitcoin Dominance Increases, ETH"s Market Share Slides, Stablecoin and Smart Contract Coins Rise On Wednesday, the crypto economy of 12,620 coins across 543 exchanges is hovering j
Bitcoin’s Risk Factor Remains High, Crypto Analyst Notes
Este artículo también está disponible en español. A crypto analyst believes that Bitcoin remains a very risk-on asset that is linked to the shifts in the macroeconomic la
Goldman Sachs hedge fund clients are piling back into crypto this year
Tom Mitchelhill4 hours agoGoldman Sachs hedge fund clients are piling back into crypto this yearInstitutional clients of Goldman Sachs’ Asia Pacific arm are showing renewed interest in Bitcoin, Ether, and other crypto
Ana Paula Pereira3 hours agoUK court grants appeal from Craig Wright in Bitcoin rights lawsuitThe decision reverses a prior ruling, allowing Craig Wright to appeal a lawsuit claiming copyright to the Bitcoin white paper
Leading Supermarket Chain in Croatia Introduces Crypto Payments
Leading Supermarket Chain in Croatia Introduces Crypto Payments Customers of the largest supermarket chain in Croatia will be able to pay with cryptocurrency for their orders in th
South African Exchange Sets New Crypto Withdrawal Limits — Restrictions ‘a Deterrent for Illicit Actors’
South African Exchange Sets New Crypto Withdrawal Limits — Restrictions "a Deterrent for Illicit Actors" One of South Africa’s biggest cryptocurrency exchanges, Luno, has
72% of Investors Will Hold Bitcoin Even if Price Falls to $0
72% of Investors Will Hold Bitcoin Even if Price Falls to $0A new poll finds that 72% of bitcoin investors are bullish about the cryptocurrency and will hold onto it even if the pri
Ukraine Raises More Crypto Than Russia in Year of War, Analysis Unveils
Ukraine Raises More Crypto Than Russia in Year of War, Analysis Unveils The two sides in the bitter conflict in Ukraine have been relying on crypto assets and technology to support