Justice anticipates bankruptcy of the ‘Bitcoin pharaoh’ company – 02/16/2023 – Market

The Justice of Rio decided to anticipate the bankruptcy of GAS Consultoria e Tecnologia, owned by Glaidson Acácio dos Santos, who became known as the “Bitcoin Pharaoh” and accused of billionaire fraud involving cryptocurrencies.

In all, according to the decision, he left more than 120,000 creditors. According to Judge Maria da Penha Nobre Mauro, from the 5th Business Court of Rio de Janeiro, the stoppage of the company’s activities makes any attempt at judicial recovery impossible.

“Bankruptcy, therefore, is justified in view of the need to ensure the protection of the various interests involved, thus understood those of the creditors, those of the employees of the requested company, whose activities, it should be remembered, are paralyzed, those of third parties that with it eventually hired,” she says.

Glaidson was the target of the Federal Police’s Kryptos operation, and is the target of a series of arrest warrants related to financial transactions and attacks on competitors in the market. He is in pretrial detention, but still tried to be elected deputy in 2022.

In this Thursday’s decision, the judge cites a CVM (Securities and Exchange Commission) lawsuit, which concluded that GAS committed “infringement of fraudulent operation in the securities market”.

“The requested company acted before its investors as an operator of a market where it could not operate without authorization from the controlling agency, that is, the capital market, instilling in the investor/consumer the false impression of being contracting with a company regularly authorized to operate in the crypto market”, says the text.

The judge says that, given the high number of creditors, “neither this 5th Business Court, nor any other Court or Court in the country, perhaps in the world, would be able to prosecute a feat of such magnitude, without compromising the processing of other processes”.

“I am therefore convinced that forwarding the consolidation of thousands of credits submitted to bankruptcy through mediation is the best measure to enable the satisfaction of creditors”, she continues.

In this model, he argues, it would be more feasible to “quickly and efficiently settle bankrupt claims, without attachments to the formalism inherent in credit qualifications in insolvency proceedings and individual settlement procedures for judgments handed down in collective civil actions”.

Glaidson’s lawyer, Andre Hespanhol, says he does not represent GAS and could not speak about the judicial recovery, but says that his preventive detention, which he considers illegal, “fundamentally influenced the bankruptcy situation and the material damage of the thousands of families involved” .

“This is because it is impossible to manage the financial problem in a situation of lack of access to files, computers and information, which depend on Glaidson Acácio dos Santos”, he says. “The intransigence and successive illegalities led to a situation of chaos and the real victims are thousands of people.”