"Bitcoin King" Claudio Oliveira Arrested For Alleged Involvement in $300M Crypto Embezzlement Scheme

Federal Police of Brazil have arrested the members and leader of Bitcoin Banco group, self-proclaimed "Bitcoin King" Claudio Oliveira in their alleged involvement in a cryptocurrency embezzlement scheme that embezzled over $300 million.

Operation Daemon was a three-year investigation that was conducted by 90 federal police officers in Curitiba and the Metropolitan Region, according to police press release on Monday.

In 2019, the Banco Group reported 7,000 BTC had gone missing and client withdrawals were all suspended, sparking a country-wide investigation. The Banco Group then filed for a judicial recovery - a type of exemption that would allow an entity to reimburse their creditors without filing for bankruptcy. The fraud and embezzlement the Banco Group have allegedly committed has harmed thousands of investors in Brazil.