Brazil The operator of a suspected crypto scam reportedly fled the country just before police began investigating the company behind the project.
Police believe the company raised around $178 million through investments from around 7,500 people.
brazilian media outlets livecoins It is reported that five individuals have left the country, with some going to Dubai and others to the United States.
The mastermind of the alleged scam promised victims up to 40% returns on their investments.
Police in the southern state of Santa Catarina said they raided several addresses and “seized 15 luxury cars.”
He described the organization as a “cryptocurrency pyramid” that offered “monthly fixed returns” of “20% to 40%” on “crypto investments”.
The individuals are believed to have operated a company in Florianópolis, Santa Catarina’s capital and second largest city.
In an operation called Crypto X, police raided the Anti-Fraud Office and the Money Laundering Investigation Office as well as government prosecutors.
Around 18 properties were searched, but no arrests were made.
Authorities said the alleged mastermind had committed “money laundering” crimes.
Police said the alleged scammers likely had “hidden assets” with the help of “middlemen”.
A prosecuting official was quoted as saying:
“The operation was vital. It provided a way to preserve the property being investigated in order to try to recoup the damage done to the victims.
The official confirmed that the search for the alleged perpetrators is now underway, and that they “will be held accountable” for their actions.
Rise in Brazilian ‘crypto scams’?
Crypto scams have been on the rise in recent months in Brazil.
In March, the sports world was shaken by the news of a Some of the country’s top football (soccer) players are involved in the alleged scam,
Police also went to bust A Suspected Sex-Torsion Ring That Used Crypto,
And a company suspected of being at the center of a massive pyramid-style crypto scam vacated their offices amid police probe,