Brazilian Officials caught in a $22 Million Bitcoin Scam

5712 Total Views

$22 Million Bitcoin Scam attempted by Brazilian Officials: Arrested

Police authorities in Rio de Janerio have revealed a money laundering scheme in which state authorities carried off money planned for prison supplies, utilizing bitcoin to trade some of the proceeds.

The scam included misquoting the budget allowance spent on food for state-run prisons, basically redirecting reserves worth $22.4 million – however, just a small portion of the total was changed into bitcoin.

As per a regional report, warrants were issued to inspect 28 sites, with seven individuals have being held up until now. Previous police chief Marcelo Martins and the former head of the state prison system, Cesar Rubens Monteiro Carvalho, were jailed in connection with the racket on Tuesday.

Warrants have also been distributed for several other suspects. One of the state officials said the scheme was created by former Rio de Janerio governor Sérgio Cabral, who was convicted to 14 years in prison in 2017 for charges that included corruption and money laundering.

According to the reports, money laundering scheme has been going on since 2001, long before some of the members started changing cash into bitcoin.

Luiz Henrique Casemiro, the Superintendent of the Internal Revenue Service in Rio de Janeiro also shared their opinion.

Casemiro said:

“We drew attention, in the Federal Revenue, regarding this specific operation, because for the first time [the] operations [involved] bitcoin. … [There] were remittances made with the purchase of bitcoin.”

Suzat Fernandes

Suzat Fernandes is an entrepreneur, with a variable experience in customer relationship management, inbound marketing, Learning Management Systems (LMS), eLearning content development and overall training strategies. She is an experienced and creative content writer and she takes content marketing initiatives to the next level. She is writing cryptocurrency and blockchain news, weekly blog posts, whitepapers, eBooks, datasheets, presentations, and more. She possesses experience in using compelling copy to educate the market on product offerings and industry information.