Alleged Bitcoin scam that raised $359M busted by Brazilian police

Police in Brazil have busted a purported Bitcoin investment scheme that allegedly stole $359 million (1.5 million reais) from victims.

According to a statement issued by the Paraná state government, state police shut down the unnamed operation and arrested nine people. 

A four-month investigation revealed 500 people from across six states — Paraná, Bahia, Minas Gerais, Paraná, Maranhão, and Amapá — had fallen victim to the Bitcoin BTC investment scam, but it is estimated the figure could rise to 5,000 people. 

“It became apparent that the operation was a scam when the victims received a message from the company, telling them that for six months the investors wouldn’t be able to withdraw their funds,” the statement reads.

The justification offered by the company was that it had fallen victim to a fraud of about $4.8 million (20 million reais). However, after six months, the scammers further delayed…