Bitcoin pyramid schemes wreak havoc on Brazil's 'New Egypt'

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25, alerted that dos Santos was planning to flee Brazil, federal police raided more than a dozen locations linked to G.A.S., including dos Santos’ home where he was found with 13.8 million reais ($2.5 million) and taken into custody.
Agents also found hard drives containing 10 times that amount in Bitcoin, gold bars, jewelry and several sports cars, including a white Porsche Panamera and an electric blue BMW Z4 convertible.

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A wave of cryptocurrency-related violence soon followed. revenues rose, enriching early adopters, copycat firms sprang up, seeking to cash in on the craze. Bitcoin fervor was particularly keen in Cabo Frio, the resort town of 230,000 where G.A.S.

was based.

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Police accuse dos Santos of ordering the hit. Less than four months later, on Aug.

4, Wesley Pessano, who advertised himself on social media as a cryptocurrency trader, was shot dead in his Porsche.

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That year his company´s transactions totaled nearly 10 million reais ($1.8 million), 15 times higher than the previous year as money siphoned in and out of his bank accounts from all over Brazil, according to a federal police report.

The country´s financial intelligence unit also noticed the company — at the time registered as a restaurant — was regularly trading cryptocurrency on online exchange platforms. By 2017, dos Santos was starting to make serious money — and attract authorities’ attention.

Three months later another firm´s operator was targeted, his car hit by 40 bullets; he also survived. Rio state police have also linked two attempted killings to dos Santos and what they called his «extermination team.» On March 20, a trader known as Nilsinho was shot while driving his BMW through Cabo Frio.

He was severely injured but survived.

In Cabo Frio, dos Santos’ success inspired other budding entrepreneurs to follow in his footsteps — not to mention those of Charles Ponzi, who died nearby in a Rio de Janeiro hospital charity ward in 1949.

The Italian immigrant who engineered one of the largest scams in U.S. history in the 1920s was buried in a public Rio cemetery with his last $75.

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A view of the luxury condominium where former waiter-turned-multimillionaire Glaidson Acacio dos Santos had a home in Cabo Frio, Brazil, Wednesday, Dec.

15, 2021. Dos Santos, the founder of G.A.S Consulting & Technology, a cryptocurrency investment firm, is the central figure in what is alleged to be one of Brazil’s biggest-ever pyramid schemes. Dos Santos, the founder of G.A.S Consulting & Technology, a cryptocurrency investment firm, is the central figure in what is alleged to be one of Brazil’s biggest-ever pyramid schemes. Dos Santos, the founder of G.A.S Consulting & Technology, a cryptocurrency investment firm, is the central figure in what is alleged to be one of Brazil’s biggest-ever pyramid schemes. (AP Photo/Bruna Prado)» class=»blkBorder img-share» style=»max-width:100%» />

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