Brazilian Authorities Execute 20 Search and Seizure Warrants in Crypto Fraud Scheme That Illegally Moved $800 Million in Transactions

The Brazilian Federal Police, the U.S. Homeland Security Investigations (HSI) and multiple law enforcement partners are jointly investigating a multinational cryptocurrency fraud ring based in Curitiba, Brazil. The Brazilian Federal Police has executed 20 search and seizure warrants against the gang, The latter violations include international money laundering, operating a criminal enterprise, fraud and crimes against the nation's financial system. After the head of the transnational criminal organization relocated from the United States to Brazil in January 2022, HSI agents stationed at the U.S. Embassy in Brasilia, Brazil, requested the assistance of the Brazilian Federal Police to coordinate the investigation between the two countries. A subsequent investigation by Brazilian authorities found that similar criminal activity was being carried out in Brazil, with an estimated BRL 4 billion ($800 million) transferred through the Brazilian banking system alone. The group allegedly defrauded investors in more than a dozen countries by falsely claiming they had developed fully functional cryptocurrency-related financial products, but in fact allegedly promoting fraudulent partnerships and licenses used to defraud victims of investing millions in Dollar.