Brazil’s ‘Bitcoin Pharaoh’ Ordered to Refund Conned Investors $3.7B (Report)

The Brazilian authorities reportedly ordered Glaidson Acácio dos Santos (known as the “Bitcoin Pharaoh”) to deposit BRL 19 billion (nearly $3.7 billion) in court. This sum will be transferred to more than 122,000 investors and creditors who have fallen victim to his fake 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 confiscated digital assets worth $28.7 million and around $3.6 million in cash and various luxury items.

‘Bitcoin Pharaoh’ has 48 hours

A recent coverage by Brazilian media outlet Grupo Globo revealed that Judge Rosália Monteiro Figueira of the Third Federal Criminal Court in Rio de Janeiro ordered Glaidson Acácio dos Santos to deposit approximately $3.7 billion. Thus, the businessman and former pastor (popularized by his pseudonym “Bitcoin Pharaoh”) will refund 122,072 investors who lost their money due to his pyramid crypto scheme.

According to the authorities’ order, Santos has 48 hours to transfer the amount. Once deposited in court, the money will be distributed to people who claim to be victims. It is worth noting that the debt payment 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 are at odds with “corporate reality.”

“Interprets the flow of incoming and outgoing transactions in the company’s accounts throughout the year as if the balance is due. Therefore, the defense manifests its disapproval with the said decision, which will certainly be considered, he added.

Not long ago, Santos showed his intentions to run as a federal deputy for the Christian Democratic Party. Last week, however, a Brazilian court unanimously ruled that he should stay out of politics for his involvement in a bitcoin scam.

The largest crypto seizure in Brazil’s history

In August 2021, Brazil’s 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 the authorities, the firm promised investors a return of up to 15% of the invested assets, but in exchange the “Bitcoin Pharaoh” and his partners allegedly used these funds to buy expensive watches and luxury cars.

During the operation, police confiscated these items along with $28.7 million in cryptocurrencies, making headlines as the largest crypto seizure in the South American nation’s history.