The Brazilian court sold about 30 Bitcoins seized by the Federal Police from a financial pyramid scam in Espírito Santo.
After raising funds from thousands of customers, TraderGroup was targeted by Operation Madoff, in the year 2019. By complying with search and seizure warrants, the PF had already seized suspects’ cryptocurrencies, as well as deleted social media pages from the financial pyramid.
In Brazilian courts, numerous lawsuits were filed by former clients, who will now have a hope of recovering at least part of their loss.
With the support of the brokerage Mercado Bitcoin, justice sells 30 coins seized in a coup
This case certainly draws attention, as it reaches the conclusion of the seizure and sale of Bitcoins seized by the federal police. In order to sell the 30 BTCs seized, the Brazilian brokerage firm Mercado Bitcoin was called in to help as a consultant and intermediary for the sale.
In the Bitcoin quote today, the amount reaches approximately R$ 6.39 million seized by the PF in the case, as shown in a document shared with Livecoins. However, one of the clients managed to carry out the arrest of 2.18472867 BTC in court, with only 28 Bitcoins (R$ 5.90 million) being sold.
But to sell the coins in the Bitcoin Market brokerage, the court was advised to make the fractional sale of the coins, with lots of 3 BTCs each. Any residuals would be sold in a separate transaction also in the order book.
As the operation of sending Bitcoin seized in operation to brokers in the market is a common practice, the Bitcoin Market was then considered in the process as “long manus” of the judiciary.
The amounts, now transformed into Real, will be sent to a court account, at the disposal of the judge who handles the case.
Since 2020, the court worked to make this sale feasible and this pioneering initiative was then implemented on Wednesday (4), when the last currency was sold in the Brazilian market.
It is worth noting that the money collected from the sales of the Brazilian justice may have exceeded initial revenue projections, since Bitcoin has been operating at a strong increase since 2019, when 30 BTCs were worth around R$ 850,000 at the time of Operation Madoff.
It is not clear how the resources will be divided by the courts, but the case certainly shows that the cryptocurrencies seized in scams in Brazil can be easily traded, even with the support of companies in the market itself and even with a good profit.
For former TraderGroup clients, the court will have to assess the disposition of the values, in Real, now that the seized coins have all been sold. It is clear that those who invested in Bitcoin should not get their digital currency back.