Thursday, December 2

Bitcoin Pyramids Face Up to 8 Years in Prison With New Bill

A crime that still has a lot of impunity in Brazil is the financial pyramid, which uses the image of Bitcoin in recent years and should generate jail for those involved.

This is the vision of Senator Eduardo Braga (MDB/AM), who presented a bill on the subject in the Federal Senate at the end of October.

According to him, the wording that typifies crimes against the national financial system should be modified to include crimes involving pyramids of cryptocurrencies.

“Adds articles 24-A and 24-B in Law No. 7,492, of June 16, 1986, to typify the constitution of a financial pyramid and the intermediation or negotiation of cryptoactives for the purpose of committing crimes.”

What does the senator’s proposal on the sentence and jail say for those involved in Bitcoin pyramids?

Senator Eduardo Braga’s bill is to change previous legislation, creating new articles to punish those responsible for creating Bitcoin pyramids. If approved, the wording would earn 24-A and 24-B.

Art. 24-A. Obtain or attempt to obtain illicit gains to the detriment of an indeterminate or determinable number of people, through any fraudulent process: Pity – imprisonment, from four to eight years, and fine. Single paragraph. The framers of the fraudulent system are responsible for the conduct described in this article, as well as investors who, knowing the fraud, recruit or try to recruit new participants.

Art. 24-B. Organizing, managing, offering portfolios or intermediating transactions for the purchase and sale of cryptoactives, with the purpose of constituting a fraudulent process, or even of practicing currency evasion, tax evasion or any other crime, regardless of obtaining economic benefit: Pity – imprisonment, from four to eight years, and fine. Single paragraph. The penalty provided for in the caput of this article applies cumulatively to those referring to crimes of currency evasion, tax evasion or other crimes committed under the terms of the caput of this article.

The senator justified that the bill aims to end the facilities for financial crimes, citing that GAS Consultoria Bitcoin, in Cabo Frio, “moved quantity expressive resources and harmed thousands of investors“.

The senator argued that the financial pyramid consists of offering profits based on recruiting new participants, not on the sale of products. When that’s over, the scheme collapses.

O Bill 3706/2021, presented on October 21, will now be considered in the Federal Senate, and may stipulate a penalty for those who create Bitcoin schemes in Brazil.

Another bill on the subject

In August 2020, senator Soraya Thronicke (PSL/MS) had already presented the bill 4207/2020 in the Federal Senate that criminalizes the activities of coups with cryptocurrencies.

Currently, this project is being processed together with projects PL 3949/2019 (Senator Styvenson Valentim – PODEMOS-RN) and PL 3825/2019 (Senator Flávio Arns – REDE-PR), in a decision of the Executive Committee of the Federal Senate in May 2021, since all of these have a common subject.

Thus, the commission will be able to unite this bill further if it understands that the procedure is similar to the other three bills presented in previous years.

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