Brazilian Cop Charged with Duping 23 Fellow Officers in ‘Crypto Pyramid Scam’

Brazilian Cop Charged with Duping 23 Fellow Officers in ‘Crypto Pyramid Scam’
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Source: AdobeStock / Adriano


A military police officer in the Brazilian state of Goiás is being tried for allegedly scamming fellow officers with a cryptoasset-themed scheme.

The media outlet Globo reported that the officer, named as Francisco de Assis Jesus dos Santos Soares de Oliveira, stands accused of defrauding some 23 military police officers to the tune of over USD 192,000. 

Quoting a lawyer for the alleged victims of the purported scam, the media outlet explained that Francisco had promised colleagues that they would make up to 30% a month if they trusted him to invest in crypto for them.

He also reportedly told fellow officers that he would make use of sports betting platforms, and promised that the money would be safely managed on UK-based IT platforms and available to them whenever they wanted to make a withdrawal.

The lawyer claimed that over time, Francisco’ s claims ended up being ever more over-the-top, describing:

“At first, he promised profits of up to 30%. But when he saw that the victims were looking for a financial return, he went so far as to say that ‘business’ was going well. And then he began speaking of profits of up to 50%.”

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The legal representative included that Francisco was likewise providing his colleagues “tips and mentorships” in crypto-related financial investments.

The trial is still active and is being performed in a closed-door court, per military authorities procedure. The Military Police Department of Goi ás State informed the media outlet that it had “taken all appropriate measures” and was now “monitoring the process in court.”

The military court has actually currently obstructed a variety of Francisco’s checking account and will freeze funds up until it reaches a decision.

The legal representative declared that Francisco had actually been based at the Rotam Battalion in Goi ânia, the state’s capital and biggest city. Reportedly, he had actually been stationed there for over a year prior to his arrest on Thursday recently.

The legal representative included that Francisco had actually begun trying to rip-off victims in July in 2015, and had actually continued to scam colleagues up until October.

In a problem submitted to the court by the declared victims, legal representatives composed that Francisco “told his colleagues that he would assume full responsibility if they incurred damages.”

However, after making some preliminary payments, Francisco apparently stopped providing cash to his fellow officers. When his associates challenged him on the matter, Francisco apparently stated that the cash had actually been “blocked due to technical problems.”

Francisco then apparently asked his associates for another USD 400 to assist straighten out the problems. When they declined this demand, he apparently assured to pay them by December 20, 2021– a pledge he apparently then stopped working to keep.

The legal representative declared that Francisco had actually saved the cash someplace, as “there was no evidence that he bought goods such as cars or real estate” with the financiers’ funds.

Another media outlet, Metr ópoles, reported that Francisco had “created” a phony tech platform to position at the center of the rip-off and offer it a veneer of credibility. He likewise apparently asked victims to stump up around a minimum of USD 1,900 in stake cash– and had actually tried to produce a “pyramid” structure where “bigger” financiers would “earn more.”

The legal representative concluded:

“His victims trusted him, so they tried to make investments as he suggested.”

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Learn more:
– NY Attorney General’s Office Asks Crypto Whistleblowers to Provide It with Tip- offs
– SEC Charges 11 People over USD 300M Crypto ‘Pyramid Scheme’

– ‘Pig Butchering’ Crypto Investment Scams Delivered ‘Massive Losses’ to Victims
– Police Investigate Ethereum, Bitcoin Mining ‘Pool’ Following ‘Scam’ Allegations

– Top 7 NFT Scams to Look Out For
– Mixers Receiving ‘More Cryptocurrency than Ever in 2022’ – Chainalysis

Compiled by Coinbold.

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