Brazilian Official And Bitcoin Pharaoh Suspected Of Money Laundering

Brazilian official and Bitcoin Pharaoh suspected of money laundering. Authorities raided the home of a local government official suspected of leading a criminal gang/ring that laundered money using cryptoassets, as well as a controversial character known as “the Bitcoin Pharaoh.”

Brazilian Official And Bitcoin Pharaoh Suspected Of Money Laundering

The raid took occurred at the residence of Armaço de Bzios councillor Lorram Gomes da Silveira, according to Globo, and authorities seized approximately USD 9,250 in cash.

The raid featured a number of agencies, including Rio de Janeiro’s state ministry-run Specialized Action Group for the Combat of Organized Crime. The authorities, as well as public prosecutors, think the councilor was the leader of a “criminal organization” that controlled large-scale “corruption” using “fake documents.”

According to the authorities, the councilman used cryptocurrency as a method of “embezzlement.”

Lorram is in his third term as Armaço de Bzios councilor, a post he was initially elected to in 2009. He was the mayor’s chief of staff from November 2018 until May 2019. According to the ministry, the offenses were perpetrated throughout this time period.

Other Were Probed As Well

Glaidson Acácio dos Santos, dubbed “the Bitcoin Pharaoh,” and Carlos Alexandre da Silva was also probed in connection with the same alleged offenses.

Officers appear to suspect that Lorram collected cash payments in exchange for issuing permits and other favors to Armaço de Bzios-based persons – then reportedly had the Pharaoh and da Silva transfer the cash into crypto in order to “hide” the proceeds.

Lorram has been suspended from performing official tasks, according to the ministry.

The ministry launched an inquiry into potential money laundering crimes in April of last year, and it believes that additional City Hall workers may have been involved in the illegal “organization.”

Meanwhile, the court has decided that around USD 271,000 in Loram’s assets are “unaccounted for,” and may be stored away in crypto wallets to which they have not yet gotten access.

The “Pharaoh” was imprisoned last year and is currently facing trial on allegations of organizing a USD 7 billion cryptocurrency-themed Ponzi scheme that reportedly promised investors 10% returns on their investments.

FDR reported earlier this month that the “Pharaoh” stated his desire to run for office – from prison – as a candidate for the Christian Democratic Party in the October general election.

Read the latest crypto news.