A Brazilian court sold confiscated Bitcoins worth US$1.1 million last month. Just yesterday it was revealed in the local media. That much BTC was confiscated by fraudulent investment crimes under the guise of crypto in 2019.
“The Federal Court in Espirito Santo ordered the sale of the US$1.1 million confiscated Bitcoins last month on Latin America's largest crypto exchange, Mercado Bitcoin. The BTC was confiscated by the police in 2019 from Tradergroup," said local media, PortaldoBitcoin, Friday (6/8/2021). This is Brazil's first time auctioning off cryptocurrencies.
Tradergroup is a crypto-coated investment scheme with a Ponzi scheme model. Its managers promise huge profits in a very short time.
It was observed in the Bitcoin transaction, one address had a balance of 30 BTC. When it was confiscated in 2019, the value was equivalent to 14 thousand rials or equivalent to Rp. 38 million.
2 BTC out of 30 BTC was returned to the rightful, because it was proven not to be related to the case.
Based on court documents read by the media, a sales order was filed in 2020 by Federal Public Prosecutor Alexandre, Senra.
“There are many victims of this TraderGroup. Some asked for their funds back in BTC," Senra told PortaldoBitcoin.
TraderGroup
The Traders Group, designed by Wesley Bin, claimed to be a major crypto investment company in 2019.
It promises huge returns through crypto investments. However, the authorities sniffed it out and used a Ponzi scheme, where every member is required to find new members in order for this scheme to survive.
In 2019, TraderGroup was forcibly terminated in the “Madoff” operation involving more than 43 Brazilian Federal Police agents.
At the time, the court blocked crypto, bank accounts, cars and property belonging to the scheme manager.
Bitcoin Auction in the US
In the United States, the sale of confiscated Bitcoins is common. The first case occurred in 2014 through the US Marshals Service, a division under the Ministry of Law. At that time, entrepreneur Tim Draper bought Bitcoin 30,000 BTC. Then, in June 2021, the US government auctioned again, 150 LTC and 8.93 BTC. [red]