On August 25, 2021 the Brazilian Federal Police with the help of Federal Revenue, Operation Kryptos and GAECO/MPF dismantled a criminal organization in the offensive charge of fraud $150 million in cryptocurrencies.

Issued by the 3rd Federal Criminal Court of Rio de Janerio, fulfilment of 7 preventive arrest warrants, 2 temporary arrest warrants, 15 search and seizure warrants in the states of Rio de Janeiro, Sao Paulo, Ceara and the Federal District, the Federal Police seized $19 million in cash with 21 luxury vehicles, expensive watches, jewellery, foreign currencies and other documents.

Resulted from a joint investigation between the Federal Police, the Federal Public Ministry and the Internal Revenue Service, of the alleged financial pyramid scheme or "ponzi schemes", arrested 5 suspects. Among them, Glaidson Acácio is the prime suspect, owner of a bitcoin consultancy in the municipality of Cabo Frio, in the Lakes Region of Rio de Janeiro. Glaidson was arrested in a mansion in Barra da Tijuca, West Zone of the state capital. Besides Rio, the arrests took place in Cabo Frio and two at Guarulhos Airport, in São Paulo by 120 federal police officers.

According to Operation Kryptos’s investigations, he is suspected of moving billions in the alleged financial pyramid scheme, which promises a return of up to 15% of the amount invested by clients. The company, which is answerable for the operationalization of "ponzi schemes", headquartered in the Region of Lagos/RJ, based on the effective public offer of an investment contract, without prior registration with the regulatory bodies, linked to speculation in the cryptocurrency market, with the prediction of an unsustainable financial return on the amount invested.

Over the past 6 years, the financial transactions of the companies involved in the frauds had billions of dollars, with approximately 50% of these transactions occurring in the last 12 months (approx. $28.8M). The investigated may respond, to the extent of their responsibilities, for the crimes of fraudulent scheme, reckless management undercover financial institution, illegal issuance of securities without prior registration, criminal organization and money laundering, and, if convicted, may serve a sentence of up to 26 years of seclusion.

On August 26, in a press release on Glaidson Acácio’s ongoing custody hearing, his defense said that they are “aware of the arrest and so far without access to the contents of the investigations. Only after proper analysis of all documentation will we be able to express ourselves in a concrete manner.”

Joyashree Dey

CBW - External Analyst

INDIA