A financial pyramid in Brazil that moved 996.76 bitcoins was the target of an operation by the federal tax authorities and police on Thursday morning (9). The operation, dubbed Trap Coin, complied with orders in several states.
According to information from the Ministry of Finance obtained by the live coinsthe joint operation was aimed at combating a criminal organization that specializes in raising funds from investors under the guise of operationalizing applications in cryptocurrencies.
With fundraising, the investigation into the Rondônia-based company began in 2021, when the first signs of crimes became public.
Financial pyramid moved 996 bitcoins by promising a 300% return
The investigations showed that the criminal practice was based on a financial pyramid scheme. Thus, the criminal organization carried out the public offer, mainly on social networks, obscure (open to everyone), of an investment contract in cryptocurrencies, in particular in bitcoin.
The promise of unrealized profit sharing and guaranteed pay attracted attention during the investigations. In addition, it offered a progressive bonus in case of third-party indication, without prior registration of the issue with the Securities Commission (CVM).
In a note, Brazil’s Ministry of Finance stated that Operation Trap Coin brought together 80 agents to carry out orders. The victims are located in different states, such as Rondônia, Mato Grosso, Mato Grosso do Sul, São Paulo and Bahia.
To date, investigators have tracked the movement of approximately 996.76 BTC by the criminal organization. According to the assessment of the authorities, on the date of the last move, it totaled about R$170 million.
Block of 120 million reais suspects
A total of 28 search and seizure warrants are being executed in the states of Rondônia, Mato Grosso, Mato Grosso do Sul, Bahia and São Paulo.
In addition, the judicial blocking of financial assets on behalf of the persons under investigation, with a total limit of R$ 120,190,102.11, was finally approved by the Federal Court of Rondônia.
The investigation showed that the amounts raised were not used to make the promised investments. That is, the funds eventually flowed back to support the financial pyramid (through payments from a minority to the detriment of the majority).
The leaders also received a large portion for personal enrichment from the scheme’s mentors, who began to boast an asset that was incompatible with the declared formal income.
The group is under investigation for committing crimes against the national financial system, especially those involving a clandestine financial institution, fraudulent/reckless management of a clandestine financial institution, and illegal issuance of securities without prior registration (Article 2 of Law No. 12.850/2013, with the cause of increase provided for in § 2). In addition to the crime provided for in Article 1 of Law No. 9.613/1998, in various cases of money laundering, as well as the consequences of conduct in the fiscal field.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
