Brazilian authorities ordered Glaidson Acácio dos Santos (known as “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 have become victims of their fraudulent cryptocurrency scheme.
Last year, the Brazilian federal police organized a special mission called “Operation Kryptos”, after which they stopped the illegal activities of Santos. In addition, they seized digital assets worth $28.7 million and about $3.6 million in cash and various luxury items.
‘Bitcoin Pharaoh’ has 48 hours
Recent coverage by Brazilian media outlet Grupo Globo revealed that Judge Rosália Monteiro Figueira of the 3rd Federal Criminal Court in Rio de Janeiro ordered Glaidson Acácio dos Santos to deposit approximately $3.7 billion. Thus, 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. Once deposited in court, the money will be distributed among the people who claim to be victims. It is worth noting that payment of the debt will only be accepted if “Bitcoin Pharaoh” can prove the legal origin of the funds.
Santos’ lawyer, Ciro Chagas, complained about Judge Figueira’s order, saying the payment terms are not consistent with “the reality of the company.”
“It interprets the flow of incoming and outgoing transactions in the company’s accounts over the years as if the balance were sold. Therefore, the defense expresses its disapproval with the aforementioned decision, which will undoubtedly be reviewed”, he added.
Not long ago, Santos showed his intentions to run as a federal deputy of the Christian Democratic Party. Last week, however, a Brazilian court unanimously ruled that he should stay away from politics over his involvement in a bitcoin scam.
The largest crypto seizure in Brazilian history
In August 2021, Brazil’s federal police shut down the activities of Santos’ cryptocurrency investment company and arrested him and four others in one of Rio de Janeiro’s most expensive neighborhoods.
According to authorities, the company promised investors a return of up to 15% of invested assets, but in return, “Bitcoin Pharaoh” and his partners allegedly used those funds to buy expensive luxury watches and cars.
Over the course of the operation, police seized these items along with $28.7 million in cryptocurrency, which made headlines as the largest cryptocurrency seizure in the South American nation’s history.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off fees on Binance Futures in your first month (terms).
PrimeXBT Special Offer – Use this link to sign up and enter code POTATO50 to receive up to $7,000 in your deposits.