Brazilian authorities will investigate fraudulent cryptocurrency schemes

Brazilian congressman Aureo Ribeiro, who has drafted a bill to regulate the cryptocurrency market, has invited local authorities to investigate cases of cryptocurrency fraud.

Ribeiro believes that the lack of proper regulation, combined with a high level of anonymity, as well as a large number of international transactions and an increased interest in cryptocurrencies, contributes to the spread of fraud.

Congressman proposes a thorough investigation into the activities of cryptocurrency companies such as Zero10, Trader Group and Atlas Quantum.

“Despite the fact that Atlas Quantum is the largest cryptocurrency company in Brazil, at the moment it has legal and financial difficulties, so it should be closely monitored,” Ribeiro said.

Atlas Quantum released a video last month confirming that $ 54 million worth of cryptocurrencies was held in three accounts on HitBTC. The exchange denied this claim, calling the video fake, and notified investors that there were no funds owned by Atlas Quantum.

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Atlas Quantum presented an audit report confirming the availability of the required amount in bitcoins and stablecoins, but investors still doubt whether the company will be able to fulfill its obligations when submitting requests for large withdrawals.

It is reported that a document requesting an investigation has already been signed by 234 congressmen. This number of signatures is sufficient to approve the investigation.

This month, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Circle Society, which is accused of extorting and tricking investors, and in July a Texas court ordered fraudsters to pay a fine of $ 360,000.