A self-styled King of Bitcoin Claudio Oliveira has been arrested by the Brazilian federal police on charges of massive financial fraud involving cryptocurrencies.
According to authorities, Oliveira participated in a scheme to defraud investors of $300m.
He is linked to Bitcoin Banco Group where he served as a president, and which ended up losing 7,000 BTC of investor funds in 2019.
Numerous parties connected to Bitcoin Banco Group have been apprehended with a total of 22 search and seizure warrants issued into the case.
Bitcoin Banco Group promised investors quick riches if they would invest their cryptocurrencies in the company. It was all ticking over nicely with consumers putting down bitcoin readily until April 2019 when issues began cropping up.
Many withdrawals were blocked prompting a wave of discontent and rumors that the money was gone. On June 6 a judged ordered the platform to prove that it still had investors' funds as part of a lawsuit lodged against the organization.
By September 2019 there were already 200 lawsuits launched by investors with over 20,000 affected individuals who had deposited in the platform.
Bitcoin Banco Group sought an out by reorganizing its finances and agreeing to pay creditors, but it never led to any concrete action by the company.
Where does Oliveira stand in this? It's difficult to say. The self-described Bitcoin King declared 25,000 BTC in his possession in a filing to the tax authorities in 2018.
Today, he faces charges of bankruptcy crime, money laundering, embezzlement and more. It's believed that Oliveira may have been involved in similar schemes in Europe.
To avoid such predatory behavior in crypto space, it's always best to stick with licensed and trusted organizations. Gaming websites such as Bitcasino, BitStarz and 1xBit have been in operation for many years now.