Brazilian police have pounced on an alleged cryptocurrency pyramid scam that looks to have taken in $769 million from soccer players, a top model, and others.

Francisley was referred to as the “primary target” of a significant operation called Poyais that the Federal Police allegedly launched after receiving information from irate investors. Twenty raids were carried out nationwide by about 100 police personnel, including ones in Santa Catarina, So Paolo, and Rio do Janeiro.

The “Bitcoin Sheikh,” whose true name is Francisley Valdevino da Silva, is allegedly responsible for the scheme, which centres around the business Forcount and the cryptocurrency Mindexcoin, according to Globo and UOL. Brazilian media reports claimed that because the coin is not listed on exchanges, it “has no market value.”

Forcount and Mindexcoin, according to attorneys for the alleged victims, are fronts for a financial pyramid that high-level investors were promised would let them to increase their earnings by bringing in new investors. The potential investors were informed that they could “rent” coins, which would enable them to realise 20% returns on their initial investments.

According to Globo, a number of unidentified soccer players were also among the deceased.

The model, TV personality, and actress Sasha Meneghel, who apparently opted to participate in the alleged fraud after meeting the “Sheikh” at an evangelical Christian church service, is one of the most well-known “victims” to have come forward thus far.

Operation Poyais – Busting a Crypto ‘Pyramid’

The police revealed that they had seized mounds of cash, fancy watches, and caches of gold bars. They further stated that both homes and bank accounts had been taken.

Officers stated that thousands of investors from Brazil, the United States, and “at least 10 other nations” had contributed money to the initiative. Additionally, according to police spokespeople, the project’s operators appear to have paid early-stage investors with new investors’ funds in classic Ponzi fashion.

But according to police, a large portion of the funds were instead used to buy “high-priced real estate, luxury automobiles, yachts, designer clothing, and jewellery” by individuals at the top of the “pyramid.” The U.S. Department of Homeland Security was reportedly involved in the operation, according to media reports.

The “Sheikh” is situated in Curitiba and stated to be in charge of a sizable group of skilled cryptocurrency dealers. In a raid last month on a purported “crypto pyramid,” police searched 15 businesses; last week, a Brazilian court authorised a bank to investigate a debtor’s cryptocurrency wallets for assets.

News Summary:

  • Police Dismantled a $769 million cryptocurrency “Pyramid” that attracted athletes and celebrities
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