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

Analysis: Crypto Heats Up As $35 Billion Enters Market In Under A Month
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Talent Giant UTA Signs Prominent NFT Projects Cryptopunks, Autoglyphs, and Meebits
Talent Giant UTA Signs Prominent NFT Projects Cryptopunks, Autoglyphs, and Meebits On Tuesday, the global talent, sports, and entertainment agency, United Talent Agency (UTA), anno
Biggest Movers: SHIB Rebounds on Saturday, as ATOM Moves Away From 3-Week Low
Biggest Movers: SHIB Rebounds on Saturday, as ATOM Moves Away From 3-Week Low Following three consecutive days of declines, shiba inu rebounded on Saturday, as the meme coin appear
Dydx Processed $1.1 Billion Cryptocurrency Loans in 12 Months — 70% in Just 60 Days
Dydx Processed $1.1 Billion Cryptocurrency Loans in 12 Months — 70% in Just 60 Days Cryptocurrency lender Dydx advanced a total of $1.14 billion in digital asset loans over the pa
Crypto phishing attacks reached ‘alarming levels’ — CertiK co-founder
Ezra Reguerra11 hours agoCrypto phishing attacks reached ‘alarming levels’ — CertiK co-founderCertiK co-founder Ronghui Gu urged the community to “proactively prepare” for cyberattacks as the crypto market grow
Wealth manager Cetera adds spot BTC ETFs to it platform, with training
Derek Andersen7 hours agoWealth manager Cetera adds spot BTC ETFs to it platform, with trainingThe large wealth management firm chose four Bitcoin ETFs for its professionals to offer to their clients.3041 Total views7 To
Natural Gas Price Hike Hits Crypto Miners in Iran
Natural Gas Price Hike Hits Crypto Miners in Iran Companies using natural gas as a power source to mint digital currency in Iran will have to deal with a sharp increase in the pric
Bitcoin CME Gap Is Still Open, Why $78,000 – $80,700 Are Very Important
Este artículo también está disponible en español. A new Bitcoin Chicago Mercantile Exchange (CME) gap has just been opened around $78,000 and $80,700. Analysts warn that
$180 Million Bitcoin Investment Fund IPOs on Canadian Stock Exchange
$180 Million Bitcoin Investment Fund IPOs on Canadian Stock Exchange Canadian investment management firm Ninepoint has completed an initial public offering (IPO)
David Attlee14 hours agoDemocratic Party of South Korea mandates parliamentary candidates disclose crypto holdingsThe disclosure will be a part of the party’s effort to show the “high moral standards” of its candid
Amaka Nwaokocha1 hour agoAI systems used in deadly military operations in Israel: ReportThe IDF has reportedly extensively deployed AI to establish itself as a global leader in autonomous weaponry.565 Total views14 Total
Tom Blackstone12 hours agoConsenSys releases ‘fuzzing’ tool to test smart contract vulnerabilitiesDiligence Fuzzing lets developers introduce random and invalid data points to find security flaws.5722 Total views3 To