Brazil Shuts Down Cryptocurrency Pyramid Scheme That Scammed People Of $200 Million

Cryptocurrency Pyramid Scheme

Brazil Shuts Down Cryptocurrency Pyramid Scheme That Scammed People Of $200 Million

Cryptocurrency Pyramid Scheme

The Brazillian police have arrested ten people suspected of operating a cryptocurrency pyramid scheme worth 850 million reals ($210 million).

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As part of Operation Egypto, a swoop dedicated to unearthing unsanctioned financial schemes, Brazil’s tax agency joined police in orchestrating a crackdown on the figures behind Indeal, who they say amassed funds from 55,000 investors.

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They lured victims with the promise of a 15% payout in the first month after investment in the crypto scheme.

The investigation involved inspection of 13 individuals and five legal entities.

According to Correido Do Povo, Delegate Eduardo Dalmolin Boliis of the federal police’s Office of Corruption and Financial Crimes said: “The problem with this company is that it was acting without authorization,”

Confiscations of assets belonging to the figures involved showed that Indeal would not be able to service withdrawals from all its investors at once.

They also used investments to pay for luxury items, authorities said, including 30 cars and precious stones that were subsequently confiscated.

Use of Cryptocurrency is not illegal in Brazil, with the police taking pains to reiterate the impetus for the Indeal raid was the lack of legality behind its business.

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