Brazilian authorities have reportedly ordered Gladson Acasio dos Santos (known as the “Bitcoin Pharaoh”) to pay 19 billion BRL (about $3.7 billion) to the court. This money will be transferred to more than 122,000 investors and lenders who fell victim to his fraudulent cryptocurrency scheme.
Last year, the Brazilian Federal Police organized a special mission called “Operation Cryptos”, after which they stopped the illegal activities of Santos. Additionally, they seized $28.7 million worth of digital assets and about $3.6 million in cash and various luxury items.
‘Bitcoin Pharaoh’ has 48 hours
recent coverage Brazilian media outlet Grupo Globo revealed that Rio de Janeiro’s 3rd Federal Criminal Court judge Rosalia Monteiro Figueira ordered Gladson Acacio dos Santos to pay nearly $3.7 billion. Thus, the businessman and former pastor (popularized by his pseudonym “Bitcoin Pharaoh”) will refund 122,072 investors who lost their funds due to his pyramid crypto scheme.
According to the authorities’ ruling, Santos has 48 hours to transfer the money. Once submitted to the court, the money will be distributed to individuals who claim to be victims. It is worth noting that repayment will only be accepted if the “bitcoin pharaoh” can prove the legitimate source of the funds.
Santos’ attorney Ciro Chagas complained about Judge Figueira’s order, saying the payment terms were inconsistent with “the reality of the company.”
“The balance explains the flow of inward and outward transactions in the company’s accounts throughout the year as outstanding. Therefore, the defense expresses its disagreement with the aforesaid decision, which must be reviewed,” he added.
Not long ago, Santos expressed his intention to run as a federal deputy of the Christian Democratic Party. However, last week the Brazilian court unanimously governed by He has to stay away from politics for his involvement in the Bitcoin scam.
Biggest Crypto Seizure in Brazilian History
In August 2021, Brazilian federal police shut down the operations of Santos’ cryptocurrency investment company and arrested him and four others in Rio de Janeiro’s most expensive neighborhood.
According to authorities, the firm promised investors a return of up to 15% of invested assets, but in return, the “Bitcoin Pharaoh” and his partners allegedly used those funds to buy expensive watches and luxury cars.
During the operation, police seized those items along with $28.7 million in cryptocurrency, making headlines as the largest crypto seizure in the history of the South American nation.
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