Electoral Court Vetoes Candidacy of the ‘Bitcoin Pharaoh’ for Deputy in Brazil

  • Glaidson Acácio dos Santos, a former waiter from Rio, will not be able to run as a candidate for federal deputy in the elections on October 2.
  • The “Bitcoin Pharaoh” is accused of defrauding hundreds of people through a Ponzi scheme executed through his company.
  • The judge argued that the applicant violated the constitutional canons of morals and ethics.

The Electoral Court of Rio (TRE-RJ) blocked the candidacy of the so-called “Bitcoin Pharaoh,” Glaidson Acácio dos Santos. The electoral body issued its unanimous decision on Monday, arguing that the applicant did not meet the legal requirements to apply.

Acácio dos Santos is serving preventive detention in Rio de Janeiro, accused of allegedly being involved in a cryptocurrency pyramid scheme. The judges who heard the case decided that Glaidson should be disqualified because he appears as a main partner in companies denounced for committing financial crimes provided for in the penal code.

However, the aspiring federal deputy can appeal the decision and file an appeal before the Superior Electoral Court (TSE) of Brazil. The pyramid scheme in which Glaidson dos Santos appears to be involved was aired in the country’s courts in August last year.

The case is part of Operation Kryptos, in which the Federal Police dismantled a gang dedicated to carrying out fraudulent operations with cryptocurrencies and confiscated some $3 million in cash and 21 luxury vehicles.

The Federal Police seized 591 bitcoin, worth $28 million at the time, in a procedure related to a Ponzi scheme. During the police raid carried out in the city of Cabo Frio, Rio de Janeiro, five people were arrested, including the “Bitcoin Pharaoh.”

Judge Luiz Paulo Araujo, who heard the case, argued that in the candidacy applications for positions of popular representation that are presented before the electoral tribunal, the “previous life of the candidates” should be considered.

“The ordinary legislator not only honored the sovereign popular will, it also gave concreteness to the constitutional canons of morality and ethics,” the judge pointed out.

After the court’s decision confirming the decision of the Rio Regional Electoral Prosecutor’s Office, the cancellation of Glaidson’s electoral registration was requested.

On the Flipside

  • If the electoral court had accepted Glaidson dos Santos’s candidacy, he would have had the opportunity to be elected federal deputy in the elections on October 2.

Why You Should Care

  • The company GAS Consultoría Bitcoin, owned by Glaidson, promised its potential victims high profits as new “investors” joined the pyramid.
  • Until 2014, the Bitcoin Pharaoh worked as a waiter in a restaurant earning a monthly salary of 800 reais ($154.2).

The rapid adoption of Bitcoin (BTC) and other cryptocurrencies in Brazil has led to many Ponzi scams.

 

If you want to read more stories related to scams and pyramid schemes, check out:

Fake Apple Crypto Scam Fools Thousands of Viewers on YouTube

Indian Police Arrest Crypto Scammer For $31M Fraud

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Santiago is Venezuelan blockchain reporter specializing in economic and financial issues, with special emphasis on stablecoin trading as well as political and regulatory issues related to Latin America. Every day he reviews and analyzes movements in the crypto market to offer readers first-hand information that can help them make sound decisions in the exciting world of crypto.