A Federal Court in Rio de Janeiro has ordered Glaidson Acacio dos Santos to deposit the sum of $3.7 billion to investors. The court earmarked the amount as reimbursement to victims of the defendant’s alleged Ponzi scheme.
Widely known as the Bitcoin Pharaoh, Dos Santos and his company, G.A.S. Consultoria e Tecnologia, told investors that they would earn impressive returns of 10% per month on their digital assets. However, this promise turned out to be false as Dos Santos spent the funds on luxury items and turned the operation into a pyramid scheme to lure new investors.
Federal Police acting on a tip-off carried out a series of raids at different locations that led to the arrest of Dos Santos and five others. The raids were code-named “Operation Kryptos,” with law enforcement confirming that they seized up to 591 BTC, 21 luxury vehicles, expensive watches, and other items.
Dos Santos has 72 hours to comply with the court’s decision to deposit the amount, but parties interested in the case are unsure whether or not he will comply. According to details gleaned from his firm’s website, over 122,000 investors parted with their funds, and local publication O Globo stated that the aggrieved investors are seeking restitution amounting to nine billion Brazilian reais.
Dos Santos, a former waiter, rose to the top of Brazilian aristocracy after turning to BTC and had his sights firmly fixed on running for political office. However, his ambitions were scuttled by the…
