The "Bitcoin Sheikh" doomed to 56 years: the crypto scam that deceived Brazilian millionaires

Do you remember the “Sheikh of Bitcoin”? Well, the Brazilian federal court has just sealed his fate: 56 years, 4 months, and 10 days in prison for one of the largest cryptocurrency scams in Latin America.

How the scheme worked

Francisley Valdevino da Silva was not a mere scammer. He was the mastermind behind a sophisticated pyramid scheme that promised the impossible:

• Returns of up to 2.8% daily
• Double money in 6 months

The trap was classic but effective: it used conferences with false testimonies from “successful investors” to lure victims. The money that came in was directly diverted to the criminals' accounts, which they spent on luxury while the scheme collapsed.

The victims: from celebrities to football players

What makes this case especially serious is who fell into the trap:

• Sasha Meneghel (daughter of the presenter Xuxa): lost R$1.2 million
• Brazilian footballers (names under reserve): also on the list of affected
• American victims: losses of R$30 million only in the U.S.
• Total damage in Brazil: estimated at R$4 billion

Sentence and continuous operations

Da Silva was arrested in 2022, but the troubling part is that he was released in June 2023… and resumed illegal operations with former employees. This violated the court's precautionary measures, resulting in his return to prison.

Five other accomplices were also convicted with sentences ranging from 11 to 48 years, but Da Silva received the harshest sentence as he was identified as the commander of the entire operation.

What this reveals

The investigation was supported by the United States and Interpol, highlighting the international scope of the scam. This case is a brutal reminder of why promises of astronomical profitability in crypto are often too good to be true.