Brazilian “Bitcoin tycoon” arrested for involvement in alleged $ 300m fraud

Claudio Oliveira, owner of a Bitcoin bank in Brazil and known as the “king of bitcoin,” was arrested yesterday for his alleged involvement in a fraudulent scheme involving $ 300 million. According to Federal officials, Oliveira faked a bitcoin hack in 2019, which resulted in his company losing a significant amount of bitcoin. More than 7,000 customers lost their money as a result of this fake hack.

“Bitcoin King” detained in Brazil
Brazil’s Federal Police yesterday arrested Claudio Oliveira for his alleged involvement in a $ 300 million fraud. Oliveira, who owns the Bitcoin bank, reported hacking bitcoin at his company in 2019. However, according to the police investigation, it is a crime to cover up the cancellation of these cryptocurrencies. Brazilian police also seized eight luxury cars and jewellery.

Operation “Demon,” which cracked the Bitcoin bank’s scheme, led to the arrest of four people. Police decamped to 22 locations, one of the largest operations against the cryptocurrency organization in the country. 90 police officers participated in the operation.

Police organized the task force after the bitcoin bank failed to cooperate in the investigation into the alleged fake bitcoin hacking. While authorities investigated the crime, the organization obtained a court order allowing it to continue its activities. Oliveira is currently charged with embezzlement, money laundering, criminal organization and crimes against the national financial system.

Bitcoin Bank & # 39; In & # 39; had a private blockchain & # 39; ”
Police discovered the bitcoin bank was running the so-called private blockchain. When customers invested their money, the system mimicked transactions that showed customers arbitrage profits. However, incoming and outgoing funds showed inconsistencies with checks carried out in the system by forensic investigators. After his arrest, the Federal Police became the owner of cryptocurrency accounts managed by the bitcoin Bank. However, they are CLA

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