Incarcerated Bitcoin Pharaoh: A Continuation of Detention and Other Updates

BeInCrypto presents an exhaustive roundup that encapsulates all the pivotal developments and insights from Latin America’s vibrant cryptocurrency sphere. Rigorous reporting by our correspondents sprawled across Brazil, Mexico, Argentina, among other locales, ensures that our audience is well-informed about the region’s crypto dynamics.

Highlights from this week include the Bitcoin Pharaoh saga in Brazil, Botev Plovdiv FC’s strategic shift to El Salvador for tokenized share issuance, and additional notable stories.

Deepening Ties: El Salvador and Russia Eye Economic Collaboration, Bitcoin Potential on the Docket

At the St. Petersburg International Economic Forum, El Salvador and Russia revealed intentions to solidify economic ties. Salvadoran Vice President Felix Ulloa championed the idea of bolstering trade and establishing shared embassies, signaling a pivot in both nations’ economic trajectories.

With sanctions from the US and the EU over its invasion of Ukraine in 2022, Russia is on the lookout for new trading partners. Meanwhile, El Salvador, under President Nayib Bukele, has distanced itself from the US and moved closer to China.

Strategically, El Salvador sees a Russian alliance as a way to up its global influence, decrease dependence on the US, and strengthen relations with rising actors like China and Russia. Economically, El Salvador is looking to correct its trade deficit with Russia, as underscored by Ulloa’s mention of a $16 million Russian import in 2021 sans reciprocal exports.

Discover more: Top 3 Crypto Methods for Cross-Border Money Transfers

Technological advancements are another goal for El Salvador as it strives to become an innovative hub. Partnerships with Russia’s tech sector might fuel these aspirations. Crucially, Bitcoin could play a key part in this collaboration. With its adoption of Bitcoin as legal tender, El Salvador’s legislative framework for digital assets and a potential Bitcoin bank could pave the way for trade with Russia, skirting conventional central bank-regulated fiat currencies.

Such economic convergence might transform El Salvador’s global position, ushering in new vistas in commerce, tech, and the digital financial sector.

Supreme Court Decree: Brazil’s ‘Bitcoin Pharaoh’ Maintains Incarceration

The Brazilian Federal Supreme Court (STF) has confirmed the continued detainment of Glaidson Acácio dos Santos, notorious as the “Bitcoin Pharaoh,” on June 11th. Accused of constructing a crypto deception scheme via Gas Consultoria, Santos was apprehended in the Federal Police’s Operation Kryptos back in 2021.

Santos’ defense craved a habeas corpus to switch his detention to house arrest, attributing psychiatric issues as grounds and contesting the Federal Court’s authority. Nevertheless, Justice Gilmar Mendes rejected these appeals. While pyramid schemes generally fall under state law, he indicated that federal intervention is apt when the transgressions have ramifications for the National Financial System.

Santos is swamped with accusations, from financial pyramid formation, deceiving management, and inappropriate securities issuance to unsanctioned operations, and being part of a criminal syndicate. His con lured victims with the allure of 10% returns on crypto-assets monthly.

This verdict trails the capture of fellow “Pharaoh of Bitcoins” Cláudio Barbosa, who helmed a pyramid scheme via Trust Investing. A fugitive since 2022, Barbosa has allegedly swindled investors from over 80 nations, resulting in losses surmounting R$4.1 billion.

Explore more: 15 Prevalent Crypto Cons to Stay Warned About

Botev Plovdiv FC from Bulgaria Shifts to El Salvador for Tokenized Company Shares

The Bulgarian football team, Botev Plovdiv FC, heralds its decision to shift crypto-related endeavors to El Salvador, aided by Bitfinex Securities. Having embraced Bitcoin as a payment mode in October 2023, the club is leveraging El Salvador’s fiscal perks and pro-business milieu, targeting new possibilities in capital domains.

George Manolov, helming the Bitcoin policies for the club, shares that Botev Plovdiv has set up a Salvadoran fiscal framework to unveil token-held shares, extending ownership stakes to investors.

Unearth more: The Essence of Tokenization in Blockchain?

“Bitcoin is our focal point for a long-term strategic financial course. We’ve chosen to undertake token issuance in El Salvador with objectives to not only fortify our Bitcoin reserve but to also involve our supporters in elevating us to a notable European club. Collaborating with Bitfinex Securities, we aim to democratize ownership, and the entry point for investment will be significantly accessible, enabling anyone to join us as a co-owner,” elucidated Manolov.

Manolov tabled this innovative model in a Bulgarian setup and is slated to divulge it at the BTC Prague forum. He tells of how tokenization will streamline the securement, swap, and control of assets on Bitfinex Securities, courtesy of the Liquid Network, a Bitcoin secondary chain.

Cryptocurrency Horizons Broaden: Itaú Unibanco Unlocks Bitcoin and Ethereum

Itaú Unibanco, Brazil’s heavyweight in the private banking sphere, has scaled up its crypto facilitation by authorizing Bitcoin and Ethereum transactions via Íon, its virtual suit. Owning assets beyond R$2.7 trillion, the institution is bent on simplifying and fortifying access to these foremost virtual currencies.

This effort was softly launched in late 2023, resonating well with clients. Internal reviews clocked over 90% user satisfaction. Presently, all active Íon subscribers can engage in cryptocurrency trades with a mere R$10 initiation.

“The crypto assets path we’re carving with our patrons fills us with joy. Widening the trade possibilities for all Íon clientele reflects the growth of not just our offering but the broader market too,” proclaimed Guto Antunes, head of Itaú Digital Assets. He accentuated Itaú’s pledge to a user-friendly and secured crypto trading environment.

Itaú’s ambition extends to schooling clients about the crypto realm to foster informed trading. This strategic advance aligns Itaú with rival Brazilian entities like BTG Pactual and Nubank, which already extend crypto exposure to their customers.

Deep dive: Comparing Crypto and Traditional Banking: A Savvy Choice?

Bitcoin Reaffirmed: El Salvador Sidesteps IMF Warnings and Stands Firm on BTC Vision

Vice President Félix Ullóa of El Salvador has restated the nation’s steadfastness to Bitcoin, envisioning an escape from central bank hegemony. The country took to various tokens and cryptocurrencies post its Law of Digital Assets enactment.

Ullóa underlined El Salvador’s Bitcoin ETF pioneering status precursing a similar US move. He’s buoyant about Bitcoin breaching the $100,000 benchmark before the end of 2024.

Despite the skeptical eye of the International Monetary Fund (IMF) and credit watchers initially, El Salvador has diversified its funding avenues, stepping away from traditional global financial bodies. This tactic has reinforced the national repute and drawn digital economy enterprises via an accommodating legislative scope.

Further reading: Who Holds the Largest Bitcoin Stash in 2024?

With its Bitcoin legal tender stipulation, El Salvador recently commemorated a three-year juncture. The state adheres to a daily Bitcoin procurement strategy, leading to an accumulation of approximately 30 BTC each month. These ventures boast unrealized gains above $67 million.

Noted financiers like ARK Invest CEO Cathie Wood endorse President Bukele’s Bitcoin blueprint as a potent force to surge the country’s GDP within the next quintet of years. Ullóa conceded that the IMF is keeping a vigilant eye on the Bitcoin Law, underscoring the vigorous discourse over its inherent risks and merits.

As we witness the cryptosphere burgeoning in Latin America, this compendium of tales underscores an escalating global influence emanating from the region. From El Salvador’s unwavering championing of Bitcoin to the Brazilian banks debuting in the crypto trading realm, LATAM is carving a significant niche in the tech territory. Anticipate further riveting developments and perspectives in our subsequent roundup.