The story of how a Brazilian man was able to use bitcoin to evade a corrupt judge's extortionate demands has been published by Panampost. The story recounts how Daniel Fraga was able to utilize a loophole stemming from Brazil's lack of legal classification surrounding bitcoin to avoid a slew of arbitrary fines incurred through Daniel publishing media that was critical of a local Sao Paolo mayoral election.
Daniel Fraga Became the Subject of Extortionate Fees as a Consquence of Publishing Political Criticism
During the Brazilian 2012 local electoral season, Sao Polo citizen Daniel Fraga uploaded a video to Youtube that criticized a candidate running for mayor in Sao Jose dos Campos. The video expresses Fraga's criticisms of the candidate for requesting the judiciary to mandate the removal of negative internet memes about his campaign from Facebook.
Fraga's video also focusses on the judge who empathized with the candidate's request, going as far as establishing a fine for dissidents who circulate 'offensive' memes. Undeterred, Fraga continued to record videos detailing the situation, resulting in the judge suing him and requesting financial compensation for 'moral damage'. As the situation intensified, the judge would eventually demand 5,000 BLR ($1,500 USD) for each instance that the events were mentioned in publicly uploaded content. The judge even requested a 'secret of justice' provision in the case, which would effectively act as a gag order.
Fraga's Story Highlights the Disruptive Potential of Cryptocurrency When It Exists Outside of a State's Regulatory Apparatus