Francisley Valdevino da Silva, also known as “Bitcoin Sheik” attributed blows to ‘internal fraud’ during a private video call for customers of his companies. While Brazilian news portal g1 and the RPC had access to the content of their ongoing conversation. “Bitcoin Sheik” is from Curitiba, Brazil.
“Bitcoin Sheik’s” Statements
On September 27, 2022 he made the statement while having a private video call and said “I’ll let you know: did the company have fraud? Did it have internal fraud? Did it have management problems? Yes. We had many things that happened with former employees and former contractors of the company where, due to the recovery, we will be putting off all events.”
Over the Federal Police (PF) operation, the defense of Francisley stated that the operation is “the usual measure in investigative procedures of this nature”. Francisley also said that he is available to provide clarifications in the judicial and extrajudicial spheres “with the scope of proving the effective regularity and lawfulness of business operations, as well as all my conduct.”
The Investigation
The PF delegate the investigation against the “Bitcoin Sheik,” began in March 2022, after a request for international police cooperation made by Interpol. This request leads towards an investigation that identifies a criminal organization, led by Bitcoin Sheik, in Curitiba.
According to the PF, “In January 2022, the US agency informed the Federal Police that an international company operating in the United States, as well as its main manager, a Brazilian residing in Curitiba, were being investigated by the El Dorado Task Force), from HSI of New York, for involvement in a multi-million money laundering conspiracy from a crypto-asset investment pyramid scheme.”
As Francisley was suspected for the frauds, the Federal Police (PF) set up an operation on October 6, 2022 (Thursday,) and accomplished 20 searches and as a part of the investigation seized warrants.
The Federal Police seized gold, luxury cars and watches from his home. As per the investigation, most of the money raised by the group was used for the purchase of real estate, luxurious cars, boats, renovations, designer clothes, jewelry, and other expenses.
Francisley brokered the movement of about R$4 billion reais in Brazil via fraud, which involved a financial pyramid with cryptocurrency trading, asset laundering and crimes against the financial system.
Since 2016, the gang had noted records of frauds in at least 11 countries. The victim list includes football players but the PF does not reveal any name from the list.
As per the investigation, some of the family members of Francisley were also involved in this scam. They were the company employees and reserved the amounts invested by the victims.
