Wednesday, February 8, 2023

Brazilian crypto broker Braiscompany steals $160M in customers' funds, blames Binance

A Brazilian broker has collapsed and vanished with $160M in customers' funds.

Braiscompany offered brokerage services where the clients would deposit their money, which would be used to day trade on Bitcoin (yeah, I know...), or would buy BTC themselves and send to the company, which offered a monthly return of 8% and that we all know that is impossible to have with certainty. The initial contract is for 12 months, and the ROI is paid monthly on the amount invested. Clients reported a delay in the monthly installments as early as December 2022.

The CEO, Antonio Neto Ais, did a live transmission earlier this week after spending a week away from the internet, where he blamed Binance for the delay in the withdrawal. The company has been called out since 2019, but only now has the scheme fallen under investigation of the justice system.

A lawyer that represents 35 former customers said that the wallets used by the broker on Binance are empty. A total of 7,203 Bitcoins were traded from there during the last four years. The last operation happened on 19/01/2023.

As we have seen countless of times, the CEO would paint himself as a smart guy, often citing Steve Jobs on his interactions. He gave speeches in the City Town Hall as well as in many politicians' events. The company sponsored lots of public meetings, concerts and such. Many people were lured by the high returns.

Let's see how this will evolve in the next months, but customers for sure aren't getting anything back for now.

TL;DR

Pyramid scheme in Brazil promised 8% of monthly returns and collapsed as of last December, stealing $160M USD from customers. After being warned since 2019 from their wrongdoings, the justice system is finally investigating them.

Not your keys, not your coins! Stop chasing easy money. DCA and be patient.


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