It's been a busy week in Brazil in the cryptocurrency industry with companies being investigated for illegal activities:
The Brazilian Securities Commission suspended Genbit and the Sao Paulo Court of Justice granted an injunction to block the company's access to their bank accounts. The cryptocurrency exchange promised investors a profit, but when they tried to withdraw their money, the investors were unsuccessful. Genbit even went as far as reversing withdraws last month.
Atlas Quantum Cheating Customers?
Atlas Quantum conducts bitcoin arbitration in Brazil. Users of the platform could sell their bitcoins to recoup their investment but then, according to Atlas Quantum customers, the company would resell the coins at 50 percent more than they paid for them. This angered customers who were told the platform wouldn't make anything off the transactions. In a surprising twist, Atlas Quantum's CEO, Rodrigo Marques, fled Brazil for the Netherlands with his family after the Federal Court of Brazil froze the company's assets.
Midas Trend Pyramid Scheme?
Midas Trend is being called the pyramid of bitcoin, but it didn't stop the bitcoin investment company from sponsoring a soccer match in France. Even though the Securities and Exchange Commission of Brazil is investigating the company, they engaged in billboard advertising and had their logo on player's shirts. Midas Trend offers investors the opportunity to make money with bitcoin and cryptocurrencies, up to 20 percent each month. Customers started complaining on social media, saying they couldn't access their accounts or reach anyone at the company, prompting the investigation.
Bitcoin enjoys immense popularity in Brazil, possibly because of high inflation rates and banking systems people do not trust. Even earlier reports of cryptocurrency related crimes in the country haven't dulled the public's trust. More Brazilians are opening bitcoin and other cryptocurrency trading accounts than traditional brokerage accounts, making it almost too easy for rogue players to open up shop.