Electoral Court Vetoes Candidacy of the ‘Pharaoh of Bitcoins’ for Deputy in Brazil

The Electoral Court of Rio (TRE-RJ) blocked the candidacy of the so-called “bitcoin pharaoh”, Glaidson Acácio dos Santos. Unanimously, the electoral body issued its decision on Monday arguing that the applicant did not meet the legal requirements to apply.

Acácio dos Santos is serving preventive detention in Rio de Janeiro accused of allegedly being involved in a cryptocurrency pyramid scheme. The judges who heard the case decided that Glaidson should be disqualified, because he appears as a main partner in companies denounced for committing financial crimes provided for in the penal code.

However, the aspiring federal deputy can appeal the decision and file an appeal before the Superior Electoral Court (TSE) of Brazil. The pyramid scheme in which Glaidson dos Santos appears to be involved was aired in the country’s courts in August last year.

The case is part of Operation Kryptos in which the Federal Police dismantled a gang dedicated to carrying out fraudulent operations with cryptocurrencies and confiscated some USD 3 million in cash and 21 luxury vehicles.

The Federal Police seized 591 Bitcoin worth $28 million at the time in a procedure related to a Ponzi scheme. During the police raid carried out in the city of Cabo Frio, state of Rio de Janeiro, five people were arrested, including the “bitcoin pharaoh”.

Judge Luiz Paulo Araujo, who heard the case, argued that in the candidacy applications for positions of popular representation that are presented before the electoral tribunal, the “previous life of the candidates” should be considered.

“The ordinary legislator not only honored the sovereign popular will, it also gave concreteness to the constitutional canons of morality and ethics,” the judge pointed out.

After the court’s decision confirming the decision of the Rio Regional Electoral Prosecutor’s Office, the cancellation of Glaidson’s electoral registration was requested.