The Federal Police of Brazil have arrested businessman Francisco Valdevino da Silva, popularly called "Bitcoin Sheikh," halting the operations of a criminal gang he led. The gang has reportedly duped 4 billion Brazilian reals ($766 million) over the past years.

The law enforcement agents raided the residence of Silva to confirm their suspicions of him being behind one of the biggest crypto scam incidents in the South American country wherein they successfully defrauded thousands of people, GloboNews reported last week.

The report further added that Silva and his people operated a dubious digital asset investment platform or simply a crypto exchange that offered around 20% returns to future investors and touted the platform, stating, it housed numerous crypto experts committed to delivering profits to the investors.

Furthermore, the operation also involved the creation of a token that was not backed by enough liquidity. It is also to be noted that many celebrities also lost money in the scam including model Sasha Meneghel, who lost over $230,000, along with Brazilian soccer players whose names were not disclosed by the authorities.

Additionally, the investigation titled "Operation Poyais" confirmed that $766 million stolen from the investors was launched via crypto and other assets. The authorities successfully confiscated these assets which included gold bars, luxury cars, and expensive watches spread across multiple addresses in Sao Paulo, Rio de Janeiro, Santa Catarina, and Parana.

In a note, the defense of Francisley Valdevino da Silva stated that "Operation Poyais is a usual measure in investigative procedures of this nature," adding that Silva is available for any question from the police.

This is not the first time that Brazil's Federal Police have arrested people over crypto fraud. Following "Operation Kryptos" last year, the law enforcement authority arrested Glaidson Acácio dos Santos better known as "Bitcoin Pharaoh."

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