$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
