The Brazilian police have arrested 10 individuals in connection to a crypro pyramid scam that has defrauded Brazilian investors with over 850 million Brazilian Reals or roughly 210 million USD.
The arrests were made after a massive police operation, involving the tax authorities.
In the focuse of the police investigation are 13 people and 5 legal entities in connection to the fraudulent scheme, called “Indeal”.
More then 55 000 investors have fallen victims to the scam, after they were promised a 15% monthly payout.
The authorities stressed that the scammers did not have any license to provide financial and brokerage services and that they were receiving funds in the form of crypto currencies and fiat money without proper authorization.
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Good thing they’ve been caught. 
I just hope that somehow, the victims were able to get some of their money back. Huhu.
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Me too, but I suspect those money are long gone and have probably been laundered by now too.
This type of news brings us a step back from crypto mainstream usage. It just cements most people’s idea of crypto being related to scams and fraud.
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Who even gets caught into such nets
yeah, I’ve got the same feeling
People just should accept the fact that money is always interconnected with different types of scam. Fiat was involved as well. I don’t see any reason to blame crypto. People are just too naive sometimes.
Yes but with fiat, they’re already all known at this point. Crypto is still in its infancy so these types of things coming out makes adoption a bit more challenging.
I don’t think anyone is or should be blaming cryptos in on themselves. Cryptos are just currencies. The system of trading and transferring them is largely unregulated and as such leads to scams. Naturally, there are plenty of scams with fiat currencies as well, as where there are money there are criminals too. I think that ignoring scams happening in both systems does disservice to everyone, especially to the victims of said scams. Seeing when something is wrong and pointing it out is the way to improvement, rather than looking away and pretending it’s not there, in my opinion.
As you all said this is sad news for the crypto arena, since more people will relate crypto with criminal activities.
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A lot of people already do, sadly. Cryptocurrencies have the potential to be so much more though.
Usually those most in need of money are the ones willing to risk the most to get more. And sadly, in my experience, it’s these same people who put blind faith in the next “guaranteed opportunity” almost always lose in the end. Very sad really.
And with things being digital and on the web, it’s ever harder to catch these criminals. But that’s not a cryptocurrency’s fault.
Do your research. If you can’t, don’t give your money away to strangers.
Another sad thing in this world. What gets more eyeballs? Good news or bad, train wreck news that you can’t take your eyes off of? The community needs more good PR to let regular folks know what positive things are being developed and worked on. The fact that cryptos and blockchain are built around technology and software and computers makes it that much harder to get a full grasp of the subject. Again, people need to do their own research.
People have always been afraid of something new, right
Agree, have been talking about it above
There are many things that prevent adoption, distrust is one of them
As many rich investors say - not too many good apps and ideas, though
And I thought if you don’t have money, you don’t risk but that happens only if a person has got some kind of addiction. In this case, you can even gamble your house together with your wife.
Certainly. And I am not sure that one will go anytime soon.
This is why many credit card companies in the United States blocked funding cryptoa accounts with a credit card. It was too easy to fund with your open credit card balance.
Reddit is full of examples of “traders” overextending themselves at the end of 2017/early 2018 during the blood bath.
That’s probably the case. 