Brazilian authorities have reportedly ordered Glaidson Acácio dos Santos (known as the “Bitcoin Pharaoh”) to deposit BRL 19 billion (almost $3.7 billion) in court. This sum will be transferred to more than 122,000 investors and creditors who fell victim to his fraudulent cryptocurrency scheme.
Last year, the Brazilian Federal Police organized a special mission called “Operation Kryptos”, after which they stopped Santos’ illegal activities. In addition, they seized $28.7 million in digital assets and about $3.6 million in cash and various luxury items.
‘Bitcoin Pharaoh’ has 48 hours
Recently coverage Brazilian media outlet Grupo Globo revealed that Judge Rosalia Monteiro Figueira of the 3rd Federal Criminal Court in Rio de Janeiro ordered Glaidson Acácio dos Santos to deposit about $3.7 billion. So the businessman and former pastor (popular with his pseudonym “Bitcoin Pharaoh”) will refund 122,072 investors who lost their funds due to his crypto pyramid scheme.
According to the authorities’ ruling, Santos has 48 hours to transfer the amount. After filing in court, the money will be distributed to individuals who claim to be victims. It is worth noting that payment of the debt will only be accepted if the “Bitcoin Pharaoh” can prove the legal origin of the funds.
Santos’ lawyer, Ciro Chagas, appealed Judge Figueira’s order, saying the payment terms were inconsistent with “the reality of the company.”
“It interprets the flow of incoming and outgoing transactions on the company’s accounts over the years as if the balance was due. Therefore, the defense expresses its disagreement with the said decision, which will definitely be reviewed”, he added.
Not long ago, Santos indicated his intentions to run as a federal deputy of the Christian Democratic Party. Last week, however, the Brazilian court was unanimous ruled that he should stay out of politics because of his involvement in the bitcoin scam.
The largest crypto seizure in Brazilian history
In August 2021, Brazilian federal police shut down the activities of Santos’ cryptocurrency investment company and arrested him and four other people in one of Rio de Janeiro’s most expensive neighborhoods.
According to authorities, the firm promised investors a return of up to 15% of invested assets, but in exchange, “Bitcoin Pharaoh” and his partners allegedly used those funds to buy expensive watches and luxury cars.
During the operation, police seized those items along with $28.7 million in cryptocurrencies, making headlines as the largest cryptocurrency seizure in the history of the South American nation.
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