Brazilian Court Ordered Sale of $1.1M Worth of BTC Seized From Tradergroup
- Brazilian federal court has ordered the sale of $1.1M worth of BTC.
- For the first time, a federal court orders the sale of crypto assets.
- Brazilian King of Bitcoin, arrested by the Brazilian authorities.
Brazilian federal court has ordered the sale of $1.1 million worth of Bitcoins (BTC), which seized by Federal police in 2019 from Tradergroup, a so-called Ponzi scheme, operating under the cover of a cryptocurrency investment company.
Accordingly, Tradergroup, mediated as part of the Madoff operation, where 43 Federal Police officers executed five searches. And seizure warrants in Espirito Santo, Mato Grosso do Sul, and Acre, the states in Brazil. The proceeds of this sale will destined to pay for some of the responsibilities that Tradergroup still has with its former customers.
More so, in July, the court decided to conduct the sale in Mercado Bitcoin, the largest crypto echange. The crypto exchange sold nine lots of 3 bitcoin. And the last slot for the remaining value, at no less than 2% of the market value. Meanwhile, the fiat funds received for the sale, transferred to a court account.
This is the first time that a federal court of Brazil orders the sale of cryptocurrency assets through the commercial exchange. But this does not mean that Brazilian regulators have lax regulations regarding cryptocurrency crimes. Even more, Brazil is one of the most active in the cryptocurrency sphere in South America. In the previous month the Brazilian King of Bitcoin, Claudio Oliveria, arrested by the Brazilian authorities. Due to his alleged involvement in a $300 million fraud scheme
Furthermore, the one who ordered the sale of the bitcoin is Federal Public Prosecutor Alexandre Senra, he stated, “There are many victims of Tradergroup with lawsuits, mainly in the State Court, asking for the money invested back, and now a portion of this money will be able to be returned, not all because the credit sold in [bitcoin] was not enough to reimburse the losses”.
