The Brazilian Federal Police Department seized 591 bitcoins (currently worth about $27.7 million) which were directly related to a company accused of operating a cryptocurrency pyramid schemes.
The Police reported that the company, which is based in the Lakes Region of Rio de Janeiro, executed activities which were allegedly linked to investment speculation in the cryptocurrency market.
Federal Police issued 15 search and seizure warrants and made at least five arrests as part of their “Operation Kryptos” plan, according to a press release. CNN Brasil reported that one of the people arrested was Glaidson Acácio, the owner of a bitcoin consultancy in Cabo Frio, Brazil.
In addition to the bitcoins, police seized 13.8 million Brazilian reais (about $2.6 million) in addition to other foreign currency. Other items were confiscated, including 21 luxury vehicles, high-value watches, jewelry, cell phones and documents which authorities deemed important to the case.
According to the police announcement, the companies involved have logged billions of reais worth of transactions in the last six years, roughly about half of which have taken place within the last year.
The suspects involved could face up to 26 years in prison if convicted. The charges include illegally issuing of securities without registration, criminal organization, and money laundering just to name a few.
