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The Brazilian government receives help from the US Department of Justice to seize cryptocurrencies worth $ 24 million

November 6, 2020

The U.S. Department of Justice seized $ 24 million in cryptocurrency at the official request of the Brazilian government, according to a report filed on Wednesday.

The Department of Justice or DoJ for its acronym in English, He said the Brazilian government had asked for his help in connection with a crypto-asset scam program called Operation Egypt. The South American nation’s authorities reported that more than 10,000 Brazilians could have been fooled by this system, with losses of around USD 200 million.

The Department seized funds related to brazilian Marcos Antonio Fagundes, one of the people allegedly involved in the case. According to the information provided by the Brazilian authorities to the DoJ, Fagundes is accused of operating a financial institution without legal authorization, fraudulent handling of a financial institution, embezzlement of funds, money laundering and violations of the Securities Act. He and his accomplices allegedly ran an unregistered financial institution to hold the crypto-assets he received from the victims “false and inconsistent promises” about how the funds were invested and excessive returns.

The Brazilian government receives help from the US Department of Justice to seize cryptocurrencies worth $ 24 million
The Brazilian government receives help from the US Department of Justice to seize cryptocurrencies worth $ 24 million

The funds were reportedly held on a US-based cryptocurrency exchange. The Justice Department said so the crypto asset company whose accounts corresponded to the embargo order, which means that it was a company in his area of ​​responsibility.

According to The United States-Brazil Mutual Assistance Treaty, which has been in force since 2001 and allows any government to submit a motion for the “proceeds or deed of crime”, is subject to embargoes in one of the areas in question. A Brazilian court issued an order requesting a digital currency that Fagundes controls or holds in the United States. This preceded the government’s filing for enforcement of the order in the US District Court of the District of Columbia.

The DoJ is currently empowered to seize cryptocurrencies related to legal cases in the United States and later auction the funds. In February, Government agency announced that it would sell CA 4,040 Bitcoin (BTC) when the price was $ 9,200. Assuming the anonymous buyers bought the funds at roughly market price, they could get a 63% return on Bitcoin’s price hike to $ 15,000 today.