Tom Arran Tom Arran, Wednesday 22nd May 2019, 4:32 PM GMT+0000
Crypto Pyramid Scheme

$210 Million Crypto Pyramid Scheme shutdown by Brazilian Authorities

Authorities in Brazil announced that they’d arrested ten people in correlation to a massive cryptocurrency “Seizure & Search” operation that was suspected for being a pyramid scheme. Local media reported this information on May 21st, 2019.

This massive seizure and search op was called “Operation Egypto” and included many police branches in Brazil. The goal was to take down any perpetrators involved with this cryptocurrency pyramid scheme. As of right now, thirteen individuals are being investigated and five legal entities for their involvement at “Indeal”, the name of the cryptocurrency pyramid scheme. It’s suspected that 55,000 thousand investors across Brazil have fallen prey to this scheme.

Police stressed that the operators were running an illegal crypto cash-flow and didn’t once bother to apply for a license or permit. The ten people who have been arrested for running Indeal used the money they earned through this pyramid scheme on themes like luxurious cars, world-renowned jewellery and exquisite homes in exotic destinations.

Siphoning Funds through Pyramid Schemes

There is minimal regulation for cryptocurrency or blockchain in Brazil. As such, there are wild returns for anybody who starts up a cryptocurrency exchange. However, this has resulted in many fraudulent cryptocurrency schemes appearing in the South America Country. This sort of thing would never happen in regulated markets across the United States of America or the European Union. Recently the Securities and Exchange Commission in the USA stopped a Ponzi scheme concerning the Argyle Coin.

Tom Arran

Author: Tom Arran

Tom has over 10 years experience on crypto currencies, first mining bitcoin on an old university computer for 20 cents a coin to now day trading bitcoin in between helping to start whichbroker.com. Tom has previously held roles at a leading EU brokerage and provided insight and consultancy work for number of UK banks in Crypto. Tom Arran can be contacted at [email protected], View all posts by Tom Arran

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