Police bust fake bitcoin mining fraud in Brazil

São Paulo’s civil police have launched an operation in several states to put an end to a fake bitcoin mining scam that robbed investors in Brazil.

Only one of the gang’s victims is said to have invested 300,000 reais to profit from mining, losing everything in the process.

In Santa Catarina, CyberGAECO of the Public Prosecution Service provided support to the operations, with suspects arrested in Florianópolis and Palhoça. The Civil Police of São Paulo has not released much information about the new operation, which took place last Tuesday (26).

Fake bitcoin mining fraud is the target of a new operation by São Paulo’s civil police

According to information from the MPSC, which took part in the operations, CyberGAECO, a unit specialized in cybercrime investigations, provided support to the Civil Police of São Paulo in the execution of seven search and seizure warrants in the municipalities of Santa Catarina.

The actions include an alleged fight against the crime of embezzlement in the sale of cryptocurrencies.

The investigation revealed that one of those investigated had recommended the victim a cryptocurrency investment company, consisting of income obtained from bitcoin mining.

The victim, believing it was a good investment, invested the total amount of R$341,456.45. However, when he wanted to redeem his supposed investments, he failed to do so, under various justifications used by the agents investigated.

The search and seizure warrants were also executed in the city of Barueri, in São Paulo. Two arrest warrants were served there. In Santa Catarina, CyberGAECO, with support from the Anti-Stelemmongering Police Station (PCSC), executed seven search and seizure warrants, including five in Palhoça and two in Florianópolis.

What is bitcoin mining?

A bitcoin mining scam is a fraudulent scheme where criminals attempt to trick victims into believing they are investing in legitimate activities, when in reality they are being deceived.

It is important to note that legitimate bitcoin mining involves the purchase of specialized hardware, high electricity costs, and significant knowledge of how the network works.

Fake bitcoin mining scams take advantage of people’s lack of understanding of this process and promise easy profits, which is usually a warning sign of fraud.

To avoid being caught out for scams in the cryptocurrency market, it is essential to thoroughly research any company or investment opportunity before sending any money. Additionally, be wary of promises of guaranteed profits and high returns as these are common signs of a scam.

Source: Live Coins

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