“King of Bitcoin” Apprehended In Brazil on Allegations of Crypto Fraud

A so-called Brazil’s Bitcoin Bank’s owner, Claudio Oliveira, who is also famous as the “King of Bitcoin”, has been arrested by the local police. His arrest was made on the basis of the allegations which suggested his involvement in a crypto scam of US$ 300 Million. Law enforcement agencies say that the King of Bitcoin had fraudulently plundered Bitcoin funds in 2019 by falsely creating an impression as if a hack attack had occurred. In this fake hack, approximately 7,000 of Bitcoin Bank’s customers lost their Bitcoin funds.

Claudio Oliveira, a national of Brazil, who calls himself “The King of Bitcoin” has been arrested by the Brazilian Federal Police. The police have alleged that the self-proclaimed King of Bitcoin was part of a 300 Million Dollar crypto scam.

According to the Brazilian Police, Oliveira had established a company by the name of “Bitcoin Bank”. However, in 2019, this Bitcoin Bank Company reported that a hack attack had occurred and resultantly the crypto funds were stolen by the hackers. Since then the police had initiated the investigation against the alleged hack attack in order to unearth the true facts.

The investigation has been concluded recently by the Brazilian Federal Police whose findings are contrary to the complaint lodged by Bitcoin Bank. In fact on 5th July 2021, the Police have made arrests in which Oliveira – the founder of Bitcoin Bank too have been arrested. Several other former and existing members of the Bitcoin Bank have also been arrested.

Raid was conducted on the basis of intelligence information which was gathered by Brazilian Police over the course of three years of investigation. After arresting members of the bank, the police then released an official statement.

In this statement, the police told that the 2019’s hack attack at Bitcoin Bank was not a hack. In fact, it was an organized crime and the founder of the bank along with his accomplices plundered the investors’ money. They then tried to hide their crime by creating an impression as if a hack had occurred. Apparently, a complaint was lodged by the bank before the police. In addition, in order to avoid bankruptcy, the bank also sought judicial recovery through the Court. An attempt was made by culprits to obtain exemption against bankruptcy and refunding the creditors in due course. However, it took almost three years of tireless efforts of the Brazilian Federal Police to bust their nefarious designs.

At the time of occurrence of the crime in 2019, it was one of the biggest alleged hack attacks that took place in Brazil. Approximately 7,000 customers of Bitcoin Bank were deliberately made to suffer the loss, which instead was a theft committed by the bank itself.

Now that the accused are arrested, the Court trial will initiate in due course.

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