Bitcoin Sheikh: Another Ponzi Scheme Takes Place in Brazil

Here’s How Brazil Police apprehended the 'Bitcoin Sheikh' for stealing $766 million

According to reports, Brazil's Federal Police have halted the operations of a criminal gang led by businessman Francisco Valdevino da Silva, the alias "Bitcoin Sheikh." Authorities claimed that the wrongdoers defrauded thousands of people and laundered up to 4 billion Brazilian reals ($766 million) in recent years.

Another Brazilian Crypto Ponzi Scheme

According to GloboNews, Brazilian law enforcement agents raided the home of da Silva and many of his associates on suspicion of being involved in a massive cryptocurrency scam that targeted thousands of locals and people from other countries. Da Silva (nicknamed "Bitcoin Sheikh") and his team allegedly ran a shady digital asset investment platform that promised future investors up to 20% returns. The criminals enticed their victims by promising a large team of crypto experts dedicated to delivering profits. According to the authorities, Da Silva and his gang created their tokens, which lacked backing or liquidity. Surprisingly, some celebrities were among the victims, including model Sasha Meneghel, who lost over $230,000. Brazilian soccer players whose identities were not revealed also made the list.

The investigation, dubbed "Operation Poyais," discovered that the scammers laundered $766 million in digital assets over several years. The police seized those items, as well as gold bars, luxury cars, and pricey watches, from multiple addresses in Sao Paulo, Rio de Janeiro, Santa Catarina, and Parana. The raid, according to Da Silva's attorney, was "the usual measure in investigative procedures of this nature." He also stated that his client is willing to provide clarification on his activities "to demonstrate the effective regularity and legality of business operations." Brazil, too, busted 'Bitcoin Pharaoh.'

Brazil's Federal Police cracked down on another fraudulent cryptocurrency platform, arresting its leaders last summer. Glaidson Acácio dos Santos (dubbed "Bitcoin Pharaoh") was one of them. Similarly to the previous example, the trading platform promised considerable returns to those who were willing to invest their savings in it. Nonetheless, if something sounds too good to be true, it probably is, and the gang duped over 122,000 people. Brazilian authorities reached an agreement after lengthy court proceedings. They ordered dos Santos to repay all cheated investors and creditors $3.7 billion last month.