Brazil Opens A Formal Inquiry Into The Country’s Rampant Cryptocurrency Scams

Brazilian Congressman Aureo Ribeiro, writer of a invoice that purports to control the Brazilian crypto market, requested the opening of a Parliamentary Inquiry Commission (PCI) to analyze crypto-related fraud in Brazil. 

Cointelegraph received entry to a doc that asks for a deep investigatigation into firms like Atlas Quantum (and CEO Rodrigo Marques), Zero10, and Trader Group, amongst others.

“Increasing interest in cryptocurrency transactions has been accompanied by a proliferation of fraud,” the document reads. “The lack of regulation and vigilance combined with high levels of abstraction, anonymity, cross-border operations, and other peculiarities inherent to the crypto market shows potential risks to users and investors.”

The congressman additionally explains in the identical doc why Atlas Quantum — as soon as the most important crypto firm in Brazil, however now going through authorized and monetary points — must be investigated:

“Atlas Quantum published a video on September 18 that show a cryptocurrency balance of more than $54 million (at the current price) that would have been withheld on three accounts on the HitBTC exchange. But the exchange denied this through its official Twitter profile on October 2, 2019, and informed investors that Atlas Quantum leaves no value stuck on the platform. HitBTC further stated that the video is fake, and that the Atlas team made no official request for assistance. At the same time, there are numerous investors who fear that the company will not be able to honor its liabilities to customers if they all request withdrawals. After the huge media coverage of the case, Atlas Quantum presented an audit report that allegedly attested to the amount of Bitcoins and stablecoins it has. But would it be sufficient to honor their commitments to the entire customer base?”

The congressman additionally talks in regards to the epidemic of cryptocurrency pyramid schemes in Brazil: 

“The quantity of fraud involving Bitcoin and cryptocurrencies is horrifying. We have opened a brand new web page on our web site for individuals who have had issues with pyramid schemes to report their circumstances, and we now have acquired an enormous variety of reviews and requests from folks throughout Brazil.”

The doc asking for the investigation was signed by 234 congressmen, which is 63 greater than the minimal required to approve the investigation. 

“We have acquired so many reviews that the PCI can be an enormous effort and can want an enormous process drive. We ask anybody who’s had an issue with cryptocurrency firms to go to my web site: and search for the right tab to make your criticism about crypto pyramid schemes,” the deputy mentioned.

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