Brazil Halts Breaks on $200 Million Crypto Ponzi Scheme Operation Egypto Who Scammed 55K Investors
Brazil has taken drastic action against a fraudulent cryptocurrency pyramid scheme by shutting down its operation in the country. The pyramid scheme which is worth 850 million reals equivalent to $210 million promises a return of 15% after the first month of investment in the scheme.
Before the crackdown, 55,000 people had already invested in the scheme according to reports by Brazil tax agency and the police who are involved in the investigation to get to those operating the scheme in the country. This is just one of the recent cryptocurrency scam cases.
In Australia, the Australian Securities and Investments Commission (ASIC) issued a warning recently on two companies (Dartalon and GFC Investments) operated by the same scam program but with different names in the country. The ASIC, however, managed to find a link between the websites of the two companies which have not been licensed to operate.
While the ASIC was able to discover the scam early enough, Brazil was a bit late on this one as the scammers have already scammed unsuspecting victims of over $2 million. As part of an investigation to uncover the criminals, 13 individuals and five legal personnel have reportedly be inspected.
An officer of the federal police’s Office of Corruption and Financial Crimes Delegate Eduardo Dalmolin Boliis blames the success of the scam on lack of proper regulation of the company.
“The problem with this company is that it was acting without authorization,”
As the cryptocurrency market sees phenomenal recovery like it has done since April, crypto-related crimes are bound to increase as previous trends suggest this to be the case. However like Boliis said, proper regulation of companies claiming to render cryptocurrency services must be strictly implemented to reduce the losses cryptocurrency holders suffer.
Funds recovered from the scammers are said to be insufficient to pay back all investors as the scammers have used part of it to buy sophisticated cars and precious stones which have been confiscated according to police report.