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

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    maudeoverby201
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    After his arrest, a crowd gathered outside broadcaster TV Globo in Rio de Janeiro to protest coverage of the alleged racket.

    In October, scores of supporters blocked the street outside a federal courthouse in Rio, demanding his freedom.

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    Then his therapist told him he sold his house to invest in G.A.S., and had been receiving 10% monthly returns for a year. Do Carmo invested 40,000 reais ($7,000) – just over half the money left in his retirement fund.

    (AP Photo/Bruna Prado)” class=”blkBorder img-share” style=”max-width:100%” />

    Lawyer Luciano Regis, 35, during an interview in Sao Pedro da Aldeia, Brazil, Wednesday, Dec.

    15, 2021.

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    And, they were assured, it was risk-free: They would get their entire initial investment back at the end of the contract. Clients were promised a 10% monthly return on their investments over 12- to 48-month contract periods, but did not own the bitcoins they were told G.A.S.

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    Bitcoin fervor was particularly keen in Cabo Frio, the resort town of 230,000 where G.A.S.

    was based. revenues rose, enriching early adopters, copycat firms sprang up, seeking to cash in on the craze. A wave of cryptocurrency-related violence soon followed.

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