Home General Investments Brazilian cop accused of duping 23 other officers in ‘crypto pyramid scam’

Brazilian cop accused of duping 23 other officers in ‘crypto pyramid scam’

Brazilian cop accused of duping 23 other officers in ‘crypto pyramid scam’
Source: Adobe Stock / Adriano

A military police officer from the Brazilian state of Goiás is on trial for allegedly defrauding other officers with a crypto-asset-themed scheme.

Globo media reported that the officer, named Francisco de Assis Jesus dos Santos Soares de Oliveira, is accused of defrauding some 23 military police officers out of more than US$192,000.

Quoting an attorney for the alleged victims of the alleged scam, the outlet explained that Francisco had promised his colleagues that they would earn up to 30% per month if they trusted him to invest in crypto for them.

He also allegedly told his fellow officers that he would use sports betting platforms and promised that the money would be managed securely on UK-based IT platforms and made available to them whenever they wanted to make a bet. withdrawal.

The attorney claimed that over time, Francisco’s claims became increasingly outlandish, explaining:

“At first, he promised profits of up to 30%. But when he saw that the victims were looking for a financial return, he went so far as to say that “business” was good. And then he started talking about profits of up to 50%.

The lawyer added that Francisco also offers his colleagues “advice and mentorship” in crypto-related investments.

The trial is still active and is being held in a closed court, in accordance with military police protocol. The State of Goiás Military Police Department told the outlet that he had “taken all appropriate steps” and was “now monitoring the process in court.”

The military court has already blocked a number of Francisco’s bank accounts and will freeze the funds until it delivers its verdict.

The lawyer claimed that Francisco had been based at the Rotam Battalion in Goiânia, the state’s capital and largest city. He was reportedly stationed there for more than a year before his arrest on Thursday last week.

The lawyer added that Francisco started trying to defraud the victims in July last year and continued to deceive his colleagues until October.

In a complaint filed with the court by the alleged victims, the lawyers wrote that Francisco “told his colleagues that he would take full responsibility if they suffered damage.”

However, after making a few initial payments, Francisco reportedly stopped giving money to his fellow officers. When asked about it by his colleagues, Francisco reportedly said the money had been “held due to technical issues”.

Francisco then allegedly asked his colleagues for an additional $400 to help them solve the problems. When they refused this request, he reportedly promised to pay them by December 20, 2021 – a promise he then allegedly failed to keep.

The lawyer claimed that Francisco had stored the money somewhere because “there was no evidence that he purchased any property such as cars or real estate” with the investors’ funds.

Another media, Metropoles, reported that Francisco had “created” a fake technological platform to place at the center of the scam and give it a veneer of authenticity. He also allegedly asked victims to pay out around $1,900 minimum in betting money – and tried to create a “pyramid” structure in which the “bigger” investors would “earn more”.

The lawyer concluded:

“His victims trusted him, so they tried to make investments as he suggested.”


Learn more:
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SEC Charges 11 People Over $300M Over Crypto ‘Pyramid Scheme’

‘Pig Butchering’ Crypto Investment Scams Caused ‘Massive Losses’ for Victims
Police investigate Ethereum and Bitcoin mining ‘pool’ following ‘scam’ allegations

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Mixers are getting “more cryptocurrency than ever in 2022” – Chainalysis


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