Ponzi schemes and scammy projects continue to take over the crypto-verse. While the US has been fending off scammy projects, other countries have been following suit. However, a collaboration between the Brazilian and the United States’ government has resulted in a big crypto bust.
US Department Of Justice Working Closely With Brazilian Officials
In a recent release, the Department of Justice of the United States revealed its latest bust of an online fraud involving cryptocurrency. The Brazilian government reportedly urged the US government to assist them in the case as it entailed a large cryptocurrency fraud scheme. “Operation Egypto” as labeled by the Brazilian federal police, was handed over to the US government and the latter went on to seize up to $24 million worth of cryptocurrency.
Brazilian law enforcement revealed that a whopping $200 million worth of profits was made through this fraudulent scheme. They further estimated that more than tens of thousands of Brazilians were victims of this scammy project. The project mainly focused on soliciting money from individuals. The involvement of crypto was reportedly very minute in the case as the convicts were returned very little money to the investors. The release further read,
“Solicitations referred to as innovative investment opportunities were made over the internet and in person, offering investments in cryptocurrencies. As alleged, the defendants solicited investors to give money to corporations they controlled, in the form of Brazilian currency or cryptocurrency, which the companies would then invest in a variety of virtual currency types.”
While the US government focused on Brazilian Marcos Antonio Fagundes, the Brazilian federal prosecutors went on to charge several in light of the same case. Fagundes was charged with several counts by the US government following the information provided by the Brazilian officials. Fagundes, as well as the other convicts, carried this operation out from August 2017 all the way to May 2019.
This latest bust and collaboration was carried out under the Treaty between the United States of America and the Federative Republic of Brazil on Mutual Legal Assistance in Criminal Matters.
