Police shut down $769m Crypto ‘Pyramid’ that ‘pulled in’ celebrities, sports stars
Brazilian police have been investigating an alleged crypto pyramid scheme that appears to have siphoned off $769 million worth of top models, soccer players and more.
Per Globo and UOL, the police believe that a person nicknamed “Bitcoin Sheik” (real name Francisley Valdevino da Silva) was behind the project, which revolves around a company called Forcount and a token called mindexcoin. Brazilian media reported that the coin “has no market value” and is not listed on exchanges.
Francisley was described as the “prime target” of a major operation called Poyais, launched by the federal police, which appears to have been tipped off by disgruntled investors. Around 100 police officers carried out a total of 20 raids across the nation – taking in states such as Santa Catarina, São Paolo and Rio de Janeiro.
Lawyers representing the alleged victims have argued that Forcount and mindexcoin are fronts for a financial pyramid scheme where high-level investors were told they could expect to earn more by recruiting members. The potential investors were told that they could “rent” coins – and that this would allow them to earn 20% on their initial stakes.
One of the most high-profile “victims” to emerge so far is model, TV personality and actress Sasha Meneghel, who reportedly decided to invest in the alleged scheme after meeting the “sheikh” at an evangelical Christian service.
A number of unnamed footballers were also said to have been among the victims, Globo added.
Operation Poyais – blow up a crypto-pyramid
The police explained that they had seized caches of gold bars, as well as luxury watches and mountains of cash. They added that properties had also been seized and bank accounts frozen.
Officials explained that the project had attracted money from thousands of investors based in Brazil, as well as the United States, and “at least 10 other countries.”
The police spokesmen also added that – in classic Ponzi style – the project’s operators appear to have used new investors’ money to pay early investors.
But much of the money was instead used by those at the top of the “pyramid” to pay for “luxury property, luxury cars, boats, designer clothes and jewellery,” officers said.
Media added that the US Department of Homeland Security was also involved in the operation.
The “Sheik” is based in the city of Curitiba, and had claimed to lead a large team of elite crypto traders.
Last month, officers raided 15 companies in a bust targeting an alleged “crypto pyramid”, while this week a Brazilian court gave a bank permission to search for assets in a debtor’s crypto wallets.
