Another crypto scheme busted

The Brazilian authorities arrested 10 people after a massive operation to break a $210 million pyramid scheme. The operation took place on 21 May, involving police forces and tax authorities. Their investigation called Operation Egypt has led to finding enough evidence against the culprits and breaking their scheme.

Authorities have investigated 13 private individuals and 5 legal entities who were involved in the scheme named Indeal, with the alleged investors at around 55,000. According to the investigation, they did not have a license for their business and did not have the permission to receive the transfers . It has attracted thousands of investors with promises of a guaranteed return of 15% after the first month of the investment.

The investigation shows that a classical pyramid scheme has been carried out, which collapses as soon as a withdrawal order is made. Indeal even used their money to buy luxury goods, including 36 cars and precious stones, all of which were subsequently seized. The company also had three bank accounts, with tax deposits in all three accounts exceeding $ 247 million.

The combination of promises of incredible returns against a background of minimal regulation encourages many scammers to attract investors into questionable schemes. In the United States, the SEC recently stopped financing the Argyle Coin, which was accused of developing a scheme.

Source: Finance Magnates

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