Civil police in Brazil’s Sao Paulo have cracked down on a money laundering operation leveraging cryptocurrencies, run by the Primeiro Comando da Capital, a notorious drug gang.

According to CNN, the PCC gang operated a cryptocurrency exchange that facilitated their money laundering efforts amounting to more than $88.6 million USD, approximately 500 million Brazilian reais.

The firm was registered in the name of a 23-year-old woman, who was not named but was reportedly the daughter of a city council candidate for Mogi das Cruzes.

During the raid, 55 million reais worth of checks were also seized from the company’s headquarters.

Further, the report added that the funds laundered using cryptocurrencies would be used to finance organized crime during the 2024 municipal elections.

As of now, the authorities have arrested 13 individuals linked to the scheme.

Cryptocurrencies have long been used as a tool by criminals and gangs in Brazil. Earlier this year, the Brazilian federal police dismantled a $2.6 billion crypto-powered money laundering operation.

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In June 2023, the Special Department of Federal Revenue of Brazil raided six local cryptocurrency exchanges that had allegedly laundered $380 million worth of dirty money.

Later that year, a UK-based individual came under investigation for using cryptocurrencies to launder drug money via the crypto exchange Binance. The funds reportedly linked to Sérgio Roberto de Carvalho, an Interpol most wanted, often referred to as the “Brazilian Pablo Escobar.”

According to a 2023 report, the trend has been observed beyond Brazil among several criminal organizations across Latin America, including notorious cartels like the Mexico-based Sinaloa Cartel and Central America-based MS-13.

The growing use of crypto in illicit activities hasn’t slowed down adoption in Brazil, which witnessed a 30% surge in crypto trading volume in 2024. Further, the nation’s central bank is expected to present digital asset regulations this year.

Capitalizing on the demand, Brazil’s largest bank, Itaú Unibanco, allowed the trading of Bitcoin and Ethereum on its mobile app on June 12. Meanwhile, in March, asset manager BlackRock launched its spot Bitcoin ETF product in the nation.

Read more: BlackRock to launch Bitcoin ETF in Brazil