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Bitcoin pyramid schemes wreak havoc on Brazil's 'N…

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Nicholas 23-07-15 08:03 view5 Comment0

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G.A.S Consulting & Technology, a cryptocurrency investment firm founded by Glaidson Acacio dos Santos, a former waiter-turned-multimillionaire who is the central figure in what is alleged to be one of Brazil's biggest-ever pyramid schemes, was based in the beach town dos Santos called home. G.A.S Consulting & Technology, a cryptocurrency investment firm founded by Glaidson Acacio dos Santos, a former waiter-turned-multimillionaire who is the central figure in what is alleged to be one of Brazil's biggest-ever pyramid schemes, was based in the beach town dos Santos called home. (AP Photo/Bruna Prado)" class="blkBorder img-share" style="max-width:100%" />






Beachgoers congregate on Fort Beach in Cabo Frio, Brazil, Wednesday, Dec.

15, 2021.

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Bitcoin fervor was particularly keen in Cabo Frio, the resort town of 230,000 where G.A.S.

was based. A wave of cryptocurrency-related violence soon followed. revenues rose, enriching early adopters, copycat firms sprang up, seeking to cash in on the craze.

Things came to a head on April 28 when Rio federal police, acting on an anonymous tip, seized the 7 million reais at the helipad of the Insolito Boutique Hotel in Buzios, a short drive from Cabo Frio.

A monthslong investigation into dos Santos' business followed.

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Despite the long list of charges he faces, dos Santos represents an unlikely hero to his fervent supporters.

Many view him as a modest Black man whose unorthodox Bitcoin business made them wealthy by gaming a financial system they believe is rigged by wealthy white elites.

He said one of his clients enlisted her husband, mother, brother, sister-in-law and an 82-year-old aunt, investing a total 822,000 reais (about $150,000). The true tally is likely much higher, said Luciano Regis, a lawyer representing dozens of victims.

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Then his therapist told him he sold his house to invest in G.A.S., and had been receiving 10% monthly returns for a year. Do Carmo invested 40,000 reais ($7,000) - just over half the money left in his retirement fund.

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