Lightspeed had an app even in official stores and claimed to be a cryptocurrency broker, now there is a police investigation from MPSP against them.
Person in a hood on a suspicious bitcoin trading site, Brazilian flag in the background (Image AI/Livecoins)
A fake cryptocurrency broker called LightSpeed has been operating in Brazil and is now under investigation by the Public Ministry of São Paulo (MPSP), following a complaint made by defrauded investors.
According to the report's investigation, the fake broker was capturing investors through an application, available even in the Google Play Store, in addition to its own website.
LightSpeed/Playback
In a report inquiry to the “Reliable Site”, the analysis shows that there is a 98% chance that the site is a scam, mainly due to the fact that the site's domain is “.top”.
Reliable Site says that the chances of scams with this domain are high/Playback.
Fake profiles infiltrate WhatsApp and Telegram groups to spread links to a fake cryptocurrency broker.
Livecoins spoke with lawyer Hector Cardenas, who already represents some clients defrauded by the scam that emerged in the cryptocurrency market at the end of 2024.
According to him, the mechanics of the scam involve the actions of supposed investment specialists, who attract victims to WhatsApp or Telegram groups, promising to teach them how to make money with cryptocurrencies.
The case concerns a fake cryptocurrency broker. A situation in which supposed financial agents attract victims to WhatsApp or Telegram groups for 'learning' about crypto investments.
The person feels confident, downloads the app from the fake broker, and starts investing amounts. Transfers are made to various CNPJs or to crypto wallets indicated by the company's agents. After performing financial operations/trades guided by the supposed company agent, when trying to withdraw, they are blocked. In some cases, they even ask for fees to carry out the withdrawals.
The lawyer recalls that he initiated the case with the Public Ministry of São Paulo through a crime report. However, upon seeing the evidence, the authority has already requested the initiation of a police investigation.
We initiated the case with the Public Ministry, with the competent crime report, seeking the initiation of an investigation, requests for the seizure of values and assets, in order to reimburse the amounts to the victims who are with us in addition to the due criminal accountability.
For its part, the Public Ministry, given the evidence presented, requested the initiation of a police investigation for the purpose of investigating the practice of fraud, as provided in article 171-A of the Penal Code.
Art. 171-A. To organize, manage, offer or distribute wallets or intermediate operations involving virtual assets, securities, or any financial assets with the aim of obtaining illicit advantage, to the detriment of others, inducing or keeping someone in error, through artifice, deceit, or any other fraudulent means.
Hundreds of people may have fallen victim to LightSpeed's scam.
The lawyer told the report that he has already been approached by at least 20 investors from LightSpeed, who believed they were investing in cryptocurrencies with the fake broker.
However, he estimates that the number of victims may exceed hundreds, as the WhatsApp groups linked to the possible scam maintained a large number of people. The investors are in various states of Brazil, showing that the possible scam did not have a specific geographical region.
On Reclame Aqui, a user filed a complaint against Google Play, which allowed the listing of a suspicious application in its official store.
Livecoins could not find those responsible for LightSpeed to comment on the case, but the space remains open for statements.
If confirmed, this is a new case of scams in the cryptocurrency market, with scammers attracting victims to groups in order to create a sense of legitimacy. In 2024, for example, Beefund also operated in the market with the same proposal, defrauding thousands of people with promises of profits in cryptocurrencies.