Daily fraud update: 4th December

Chris Lee

Leaders set to be indicted in Brazilian pyramid scheme case

A group of over a thousand people who have been accused of working as part of a forex pyramid scheme are set to be indicted by the Brazilian federal police.

A report suggests that 1,200 or more leaders in various fields could be indicted as a result of the development, and they will need to explain to the authorities some aspects of their finances.

The range of accused people is unusually broad, and reports suggest that a variety of professionals could be targeted.

These include everyone from lawyers to doctors in the Sinos Valley area, which is part of the Rio Grande do Sul region.

The case focuses on Unick, an alleged scam which has already seen lots of people targeted.

The firm supposedly told its investors that the amount of profit they could derive was guaranteed at 2% per day, and that the investments would cover both foreign exchange and cryptocurrency.

Unick had a multi-level marketing element to it too, with participants able to gain bonuses on a tiered scheme if they recruited or referred new people to join.

Allegedly, the firm did not get the right license from the financial regulator in the country – but yet went on to receive the equivalent of over $600m.

The police investigation into the firm has already led to arrest warrants.

Chief Legal Officer of Unick Fernando Lusvarghi had a warrant issued against him earlier in the year.

The investigation has been ongoing since January 2019.

New regulated crypto exchange launched by BitcoinBlink

A new Estonian cryptocurrency exchange has been launched – and it has described its key purpose as helping clients to navigate regulations and laws.

Press releases about BitcoinBlink’s launch have focused heavily on compliance, and have gone into detail about how the platform was ideal for traders who want to ensure that they are not breaking any laws.

“The licenses are granted after a grueling process topped by an interview of the CEO by the Financial Intelligence Unit in Estonia”, the press release read.

It also went on to describe the hiring of a compliance officer who “will manage critical tasks which include audits, AML, CFT, KYC, Data privacy and more”.

The arrival of exchanges which specifically target those worried about compliance is a sign of the increased focus that many crypto traders place on complying with laws around anti-money laundering, “know your customer” and more.

According to Iseki Solari, who is the CEO and founder of BitcoinBlink, the goal is to “reduce risk and build trust”.

“The current cryptocurrency market makes it difficult, particularly for new participants. There is little or no transparency, and few people really know how it works. BitcoinBlink hopes to bridge these gaps”, he said.

“It is committed to providing a safe trading environment for its customers, and actively taking measures to help reduce risk and build trust. In the long term, this will help improve acceptance of cryptocurrencies as well”, he added.

Chris Lee

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