Claudio Oliveira, the owner of Brazil-based Bitcoin Bank and known as the King of Bitcoin, was arrested on charges of organizing a $300 million fraud.

According to Brazilian investigators, Claudio Oliveira faked the hacking attack on his company's bitcoin wallets in 2019, as a result of which thousands of coins were allegedly stolen. More than 7,000 customers lost their funds after that staged hack. Oliveira is charged with embezzlement, money laundering, criminal organization and crimes against the national financial system.

Brazilian law enforcement agencies became interested in Bitcoin Bank after it refused to cooperate in an investigation into the alleged hacking of bitcoin wallets in 2019.

The working group managed to find out that the clients of Bitcoin Bank, which worked on a private blockchain, deposited their funds, and the system only simulated data on profit from arbitration deals. Inbound and outbound funds were indicative of inconsistency with system audits conducted by forensic investigators.

This pyramid scheme robbed more than 7,000 investors of funds, including employees and service providers. However, this is not the first time Oliveira faced justice. The Bitcoin King has already been charged with similar crimes in the United States before. In addition, back in 2000, Oliveira was found guilty of embezzlement and document forgery in Switzerland.

Brazilian police confiscated eight luxury cars and jewelry belonging to Oliveira. During the special operation against Bitcoin Bank, four more participants in the fraud were arrested.