Suspects involved in the scheme are being accused of defrauding investors of over $200 million.
US and Brazilian authorities have seized $24 million in cryptocurrency connected to an online scheme that allegedly defrauded « tens of thousands » of investors. Upon request from the government of Brazil, US law enforcement participated in « Operation Egypto, » a Brazilian federal investigation into the suspected scam, the US Department of Justice (DoJ) said on Wednesday. The collaborative effort, made under the Mutual Legal Assistance in Criminal Matters treaty, tracked down suspect Marcos Antonio Fagundes, who is being charged with the operation of a financial institution without legal authorization, fraudulent management of a financial institution, misappropriation, money laundering, and the violation of securities law. See also: US unveils enforcement framework to combat terrorist, criminal cryptocurrency activities Prosecutors allege that between August 2017 and May 2019, Fagundes and co-conspirators used the internet to find and solicit investors — sometimes together with communication over the phone — and convince them to invest in new financial « opportunities.
