Brazilian crypto pyramid Indeal filed for bankruptcy

Investment company Indeal is recognized as a financial pyramid, and the management is accused of causing harm to more than 23 thousand clients in the amount of more than $ 200 million.

The court of the Brazilian city of Porto Alegre received a notice that the investment company Indeal, accused of creating a cryptocurrency financial pyramid and stealing money from customers, was declared bankrupt.. The decision was made by the arbitration court of the district of Novo-Hamburgo at the place of registration of the company.

From the date of the bankruptcy announcement, all of Indeal's financial assets, real estate and vehicles will be used to repay the damage caused to the company's customers.

A criminal case was initiated against the management of Indeal for attracting funds from clients on knowingly false terms. The company promised potential investors a return on investing in crypto assets at the level of 15% per month. During the investigation, law enforcement agencies detained 15 suspects.

Prosecutors are seeking about 1.19 billion reais (more than $200 million) from the defendants in compensation for damages to 23,200 affected consumers.

Recently, the US District Court of Massachusetts sentenced Randall Crater, the founder of My Big Coin cryptocurrency fraudulent scheme, to 100 months in prison and $7.6 million to the victims.