The Federal Court ordered the manager’s temporary removal Titanium active managing three cryptocurrency investment funds — universe, Structure It is Crypto access. The measure follows the Operation Ouranos of the Federal Police, which is investigating an alleged pyramid scheme involving more than R$1 billion.
The funds, previously managed by Titanium Asset and managed by Vórtx Distribuidorafinancial institution authorized by the Securities and Exchange Commission (CVM)had their movements completely blocked.
This includes the suspension of redemptions and the liquidation of shares, which has a direct impact on fund investors. It is estimated that approximately 600 shareholders will be affected by the court ruling.
The case marks the first time in the history of the cryptocurrency market that a CVM regulated fund has been accused of operating a Ponzi scheme.
Titanium Asset is contesting the decision, claiming that the judicial blockade was a mistake, with negative consequences for shareholders. The manager has hired the firm Siqueira Castro to defend her and hopes to turn the situation around.
Justice blocks three cryptocurrency funds
According to an official statement, on November 28, 2023, Vórtx received an order from the judiciary that determines the temporary replacement of the fund portfolio management service provider.
As a result, Vórtx will assume the management of the funds until liquidation or until a final decision is made on freezing assets or appointing an intermediary.
The order also prohibits any refund of invested amounts or liquidation of shares of the affected funds. As a result, all repayments and settlements of amounts have been suspended until further notice.
O Structurea cryptocurrency arbitrage hedge fund, was known for its strategy of profiting from price distortions between different crypto markets, thereby targeting qualified investors.
Meanwhile, Cripto Access, described as a ‘watery’ fund, diversified its applications between structural and fixed income securities, making it accessible to retail investors.
Galaxy consisted mainly of cryptocurrencies such as Bitcoin and Ethereum, but also projects in the stablecoins and DeFi sector.
Vórtx reported that it is in contact with Titanium Asset to obtain more information that may have led to the issuance of the court order.
PF operation
Operation Ouranós resulted in the issuance of 28 search and seizure warrants, as well as the freezing of assets including real estate, boats, luxury vehicles and bank accounts.
The federal police investigation points to a scheme involving cryptocurrency arbitrage to raise funds worth more than R$1 billion from around 7,000 investors spread across 17 Brazilian states as well as abroad.
The investigation revealed that the collected funds were distributed through various company accounts, in a process of asset protection, with the aim of draining the assets of the clandestine financial institution.
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.
