Juan José Benavides Velasco faces serious charges in Colombia. Prosecutors say he led a group that washed over 126 billion Colombian pesos between 2019 and 2022. That’s roughly $31.6 million USD, a staggering sum.
The country’s Attorney General’s Office has formally accused Benavides Velasco. They see him as a main architect behind a fraudulent investment scheme called Daily Cop. This illegal setup reportedly ran from 2019 to 2022. It acted as a cover for a huge money-laundering operation that used cryptocurrencies.
Prosecutors stated that Benavides Velasco, along with others and some companies, built a criminal network. Their goal was to take money from people. They did this by promising high returns, from 0.5% to 12% monthly. Many people fell for this trap.
A Web of Deception
To win over investors, Daily Cop launched big advertising campaigns. They put up billboards, held large public events, and created online materials. These efforts made the supposed crypto investment look safe and profitable. It was all a front, according to investigators.
Authorities say these tactics helped launder more than COP $126.702 million. The scheme hid where the money came from. It channeled funds into personal assets and made-up business deals.
The fraud hit individuals hard too. So far, at least 150 people say they lost money. Their total losses amount to more than COP $8 billion, which is over $2 million USD. Victims shared stories of trusting Daily Cop because it seemed to be growing and gaining acceptance at events and online.
Investigators found that in 2022, Benavides Velasco allegedly used some of the stolen money. He bought a luxury property and an expensive car. These purchases didn’t match his known legal income. This fact backs up the claim that he got the money through illegal acts. The prosecution has plenty of evidence to link Benavides Velasco to this criminal operation. He faces charges of conspiracy to commit a crime, illicit enrichment, and money laundering.
Legal Fight Ahead
The case against Benavides Velasco is a new chapter in Colombia’s fight against crypto-related frauds. Ponzi schemes and pyramid models, dressed up as real investment chances, have become a major concern for officials.
The Attorney General’s Office has promised to bring those responsible to justice. They also warn people to be careful. If a project promises too-good-to-be-true returns or lacks clear rules, it’s probably a scam.
Interestingly, Benavides Velasco’s charges come weeks after Colombia issued an international arrest warrant for him through Interpol. This Daily Cop saga has also stirred up some debate in Colombia. There are claims of links between the scam and Gustavo Petro’s 2022 presidential campaign. Ómar Hernández Doux-Ruisseau, CEO of Spartan Hill, a company tied to Daily Cop, told authorities about financial dealings with Ricardo Roa. Roa now heads Ecopetrol and once supported Petro’s election efforts.
This court case also highlights how tough it is for legal systems to keep up with new financial tech. Especially cryptocurrencies, which often operate without much government oversight.