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.
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 UOL.
Brazilian media reports claimed that because the coin is not listed on exchanges, it “has no market value.”
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.
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 realize 20% returns on their initial investments.
The model, TV personality, and actress Sasha Meneghel, who apparently opted to participate in the alleged scheme after meeting the “Sheik” at an evangelical Christian church service, is one of the most well-known “victims” to have come forward thus far.
There were also supposedly some unidentified soccer players among the fatalities.
‘Pyramid’ Crypto Operation Poyais: Busting
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.
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