Businessman Eike Batista Has Over R$ 3 Billion Blocked by the Federal Court of Rio de Janeiro Due to the Bankruptcy Proceedings of MMX Mining and Metals

Seizure Was Carried Out by the 5th Federal Court of Tax Execution of Rio de Janeiro

The great businessman Eike Batista has been involved in major controversies in recent years due to frauds in the capital markets with the intention of making a fortune. Now, another scandal to add to the list: the seizure of over R$3.6 billion by the 5th Federal Court of Tax Execution of Rio de Janeiro. This decision by the Federal Court is directly related to the bankruptcy process involving the company MMX Mining and Metals, to which Eike is said to be connected.

The seized assets total a detailed and overall value of R$ 3,622,491,046.40, made by Judge Bianca Stamato. This amount refers to the debt that the company left behind before declaring its bankruptcy and was updated at the beginning of the month with late interest. The company declared bankruptcy in May 2021. Learn more about this decision below.

Understand a Little More About This Event Involving the Federal Court of Rio de Janeiro and the Businessman in the Video Below

Eike Batista’s Defense Has 30 Days to Respond to the Decision and Attempt to Reverse the Situation

The request for the seizure of Eike Batista’s assets would serve as a “pledge” or guarantee for the payment of outstanding debts of MMX Mining and Minerals. The seizure request was made by the National Treasury and then authorized by the judge this week.

From this decision, the billionaire’s defense has up to 30 days to appeal and attempt to reverse the situation. In the decision, the final date will be July 20, 2022, but rumors suggest that it could be until the 23rd, due to delays in the publication of the decision.

Eike Batista Has a History of Fraud in the Capital Markets and Was Sentenced by the Federal Court to 11 Years in Prison

Eike Batista already has a criminal record. In early 2021, he became the talk of the town after being sentenced to 11 years and 8 months in prison by the 3rd Federal Criminal Court of Rio de Janeiro for crimes against the capital market. In the decision, the presiding judge, Rosália Monteiro Figueira, pointed out the crimes of insider trading and market manipulation.

Additionally, with the imprisonment, the businessman was fined around R$870 million for the crimes committed. The conviction is the result of a major investigation by the Federal Public Prosecutor’s Office which indicated that Eike had simulated injecting R$1 billion into OGX to attract more investments and elevate profits to astronomical levels.

According to the MPF, in 2013 the businessman used insider information to profit more in the financial market through the sale of OGX shares, which is considered illegal. This is because he had this data even before the market, generating manipulation.

And that’s not all. Eike Batista has already been arrested twice in Operation Lava Jato for market manipulation in various countries beyond Brazil, such as the United States, Ireland, and Canada.

In March 2021, he was also sentenced by the collegiate of the Securities and Exchange Commission (CVM) to pay a fine of around R$150,000 for voting in a situation of conflict of interest during a meeting of the Board of Directors of MMX Mining and Metals, in his position as president.

Generally, the crimes he is responding to were committed between 2010 and 2015 and contributed to the blocking of assets at this time. Now the defense will be able to respond in the coming days, or the assets may effectively settle MMX Mining’s debt.