- Chairman of Bitcoin group Banco Claudio Oliveira and his members arrested for embezzlement of 300 million dollars.
- Oliveira has also designed similar programs in Europe and the United States.
Chairman of Bitcoin Banco Group, a Brazilian Bitcoin brokerage firm, Claudio Oliveira, also known as "Bitcoin King ”was arrested on charges of bankruptcy, embezzlement, operating a criminal organization in Brazil and money laundering.
The company rose to fame for its sky-high returns which attracted dozens of thousands of investors. In May 2019, the Bitcoin Banco group came under suspicion after announcing that its platform had been hacked, but failed to support its claim with convincing evidence. A former client therefore filed a complaint against the firm. The court then ordered Oliveira and her team to provide evidence of the alleged hack on June 6th. In July, the company resolved the issue with the complainant according to several reports.
The alleged hack affected approximately 20,000 customers.As of September, more than 200 lawsuits had been filed against the company by angry investors. The court then issued an order freezing his account.
The president of the Bitcoin Banco group claimed 25,000 BTC
Bitcoin Banco Group later revealed that 7,000 Bitcoins in investors' funds have disappeared and have filed for receivership with a bankruptcy court in Curitiba, in order to reach an agreement authorities to avoid bankruptcy by exploring possible means to repay creditors.
However, the company ignored its obligation to the bankruptcy court by failing to reimburse creditors while Ellhe resumed his usual commercial activities. The Bitcoin Banco group has reportedly continued to convince more customers by introducing a "public collective investment contract". This was to convey the idea that he had not registered with the Brazilian Securities Commission.
The lawyer for the investors concerned pointed out that the amount indicated by the audited data is very different from the amount indicated by the company. Additionally, the company did not provide any wallet data that could settle the matter.
"Operation Daemon," which included around 90 federal police officers from Curitiba and the metropolitan area, discovered that the group had embezzled 1.5 billion reais (300 million US dollars) in a three-year investigation. A 2018 tax return that was
Other members of the Bitcoin Banco group were subsequently given a preventive arrest warrant, four arrest warrants. temporary stop, as well as 22 search and seizure warrants. It was also reported that Oliveira has designed similar programs in the United States and Europe.