$200 Million Brazilian Crypto Fraud Scam: The US Seizes $24 Million Worth of Digital Currencies

America Department of Justice (DOJ) says it has seized cryptocurrencies worth $24 million after receiving an legitimate quiz from the manager of Brazil. The seizure stems from an ongoing investigation into the $200 million cryptocurrency scam that might perchance perchance non-public defrauded tens of hundreds of Brazilians. The authorities in Brazil enlighten the scammers duped folk by as soon as almost today promising exaggerated returns and falsifying where the funds non-public been invested.


Felony violations

In a commentary, the DOJ says the U.S. acceded to Brazil’s quiz primarily based totally on the cooperation treaty signed between the two worldwide locations with admire to “Mutual Beneficial Help in Felony Matters.”

Meanwhile, in step with the DOJ commentary, “the U.S. seizures non-public been tied to Brazilian Marcos Antonio Fagundes’ alleged role within the procedure.” Fagundes and several other unnamed accomplices non-public been “charged with several prison violations of Brazilian laws, alongside with, among other offences, the operation of a financial establishment without correct authorization.”

The commentary provides that the accused furthermore faces costs of “false management of a financial establishment, misappropriation, and money laundering, as well to securities laws violations.”

The DOJ commentary presents a short abstract of a Brazilian court docket’s findings in opposition to Fagundes and his accomplices. The commentary says:

During August 2017 to Might perchance perchance 2019, Fagundes and other defendants solicited funds from doable investors over the catch, as soon as almost today alongside with phone and other arrangement, and held the funds obtained in a system that subjected it to laws as a financial establishment below Brazilian laws, with which Fagundes and the other defendants failed to conform.

The commentary shows that the “defendants solicited investors to present money to corporations they managed, within the form of Brazilian currency or cryptocurrency, which the corporations would then invest in a unfold of virtual currency kinds.”

False claims

On the other hand, because the Brazilian court docket came across, “most attention-grabbing a actually puny quantity of funds non-public been invested in cryptocurrencies as promised, and actually small modified into as soon as returned to the investors.”

Meanwhile, the DOJ says U.S. authorities for the time being are working in close cooperation with the Brazilian authorities and others to “restrain the virtual currency and defend it for forfeiture lawsuits pending in Brazil to compensate the investors victimized on this false investment procedure.”

The commentary concludes that “the cryptocurrency agency conserving the accounts cooperated with laws enforcement authorities in executing this seizure.” Serene, the commentary does no longer give the name of the cooperating crypto agency.

What note you suspect of this cooperation between the two worldwide locations? Part your strategies within the comments portion below.

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