Brazil Police busted the ‘Bitcoin Sheikh’ for stealing $766 million in Crypto Ponzi Scheme

Crypto Scams

The federal police of Brazil have reportedly stopped the operations of a criminal gang involved in Crypto Ponzi schemes, and this gang is led by businessman Francisco Valdevino da Silva, a.k.a “Bitcoin Sheikh.”

Globo, the local reporting from Brazil has mentioned that Brazilian law enforcement agents raided the address of da Silva and his partners and they revealed that this crypto scam targeted thousands of locals and other countries. The group seemed to have run a dubious crypto investment firm that promised up to 20% returns to future investors. The victims were lured into investing by telling them that the company had a bunch of experts who are committed to delivering profits to the investments made.

Da Silva and his gang have reportedly also launched their own tokens, which according to the federal authorities had no backing or liquidity.

The investigation named “Operation Poyais” was conducted by law enforcement agents and it determined that the scammers laundered over $766 million worth of digital assets over the past several years. It was crypto, gold bars, luxury cars, and expensive watches that was confiscated by the police across multiple addresses in Sao Paulo, Rio de Janeiro, Santa Catarina, and Parana.

Da Silva’s attorney said the raid was “the usual measure in investigative procedures of this nature.” He also stated that his client is ready to provide clarification on his activities “with the scope of proving the effective regularity and lawfulness of business operations.”

This isn’t the first case of such raids done by Brazil’s Federal Police. Last summer, they cracked down on another such platform and arrested their leader Glaidson Acácio dos Santos (known as “Bitcoin Pharaoh”). Over 122000 individuals ended up conned by the gang, and after several court trials, it was decided. that dos Santos has to reimburse all the cheated individuals with a total sum of about $3.7 billion.

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