Bitcoin King and his team received accusations of the theft of some 7,000 BTC in 2019. They also face charges of embezzlement and scams.
Claudio Oliveira, the president of Bitcoin Banco Group and a well-known figure of the crypto ecosystem in Brazil nicknamed “Bitcoin King / Rey Bitcoin, faced an arrest warrant on charges of embezzlement and theft of some 7,000 BTC.
This Information appeared in a press release issued by the local authorities, which have reported that the investigation against Oliveira had been ongoing for around three years, just after Bitcoin Banco Group revealed the alleged theft of some 7,000 BTC after attacking the systems.
Olivieira Was Promoting a Scam
According to the investigation carried out by the authorities, there was evidence pointing out that Bitcoin Banco Group was a scam within the local crypto ecosystem. The scammer team was directly led by Oliveira, with full knowledge and responsibility for the irregularities that took place.
Beyond the alleged theft of the 7,000 BTC, one of the first signs about the scam in question came when the company in charge of Oliveira started forbidding the withdrawal of funds from the platform. This irregularity warned investors, and they claimed that the company prevented them from taking possession of the assets that originally belonged to them.
After the theft of the BTC funds happened, the company agreed with the authorities regarding a compensation plan for those affected users, and a deadline to reorganize their finances. The investigation revealed that Oliveira and his team failed to comply with the tasks they assumed, so they kept offering investment packages and contracts to more victims.
The court in charge of the case froze the accounts of Bitcoin Banco Group since there were 200 lawsuits against the company. In there, the affected users alleged the loss of their funds due to that pack of measures. There were more than 20,000 investors that suffered the scam perpetrated by Oliveira and his working group.
Oliveira had Scammed Other users Before
Concerning Oliveira, he earned the nickname Bitcoin King / Rey Bitcoin after revealing news about his earnings thanks to the digital currency.
But the fact is that the investigation revealed some similar crimes Oliveira had previously committed in the United States of America. At the time, he managed to organize commercial campaigns to embezzle investors.
The investigation, called Operation Daemon, determined that Oliveira is the perpetrator of crimes associated with embezzlement, money laundering, criminal organization, and other charges.
The legal procedure
After completing the investigations, the authorities initiated an operation to capture Oliveira and his associates, with at least 22 search and seizure warrants.
The police report reads:
The judicial orders focus not only on the cessation of criminal activities but also on clarifying the participation of all those people investigated in the crimes reported. As well as the patrimonial monitoring needed to activate, partially, the reparation of the damages caused to the victims.
By: Jenson Nuñez
