Brazilian “king of Bitcoin” owes U$ 125 million to investors

Brazilian “king of Bitcoin” owes U$ 125 million to investors

According to news site UOL, Claudio Oliveira, president of Brazilian Bitcoin exchange Bitcoin Banco owes U$ 125 million to 6445 investors.

Known in Brazil as “the king of Bitcoin”, Oliveira’s bank has blocked customer withdrawals since May 2019.

Bankruptcy consultancy EXM Partners filed a new document with Brazil’s 1st District Bankruptcy Court in the southern city of Curitiba.

Similar to American Chapter 11 protection suit, the bankruptcy lawsuit was filed late 2019 by the 8 company consortium behind Bitcoin Banco.

In the lawsuit, Bitcoin Banco justified the withdrawal block as a way to recover liquidity and return to normal operation.

90% of the debt is owed to customers, some of whom borrowed money from elderly relatives to invest in Bitcoin Banco.

Bitcoin Banco Group did not want to comment at the time of UOL’s news report, claiming the issue should be discussed exclusively in court.

 

Image credit: Claudio Oliveira personal social media

on January 27, 2020