*Brazil Seizes $1.6 Billion in Crypto: What You Need to Know*

a decisive move, the Internal Revenue Service and Federal Police of Brazil seized around $1.6 billion worth of crypto and fiat. Both organizations launched an operation called Niflheim to dismantle a large scheme involving money laundering, tax evasion and cryptocurrency fraud. This joint operation targeted multiple cities of Brazil including Caxias do Sul, São Paulo, Fortaleza and Brasília.

Let’s dive deeper to learn what exactly happened.

*Aim of this Operation*⬇️

The focus of this operation was to uncover the obscure financial activities of groups involved in cryptocurrency frauds. To crack down on these illegal financial operations, a total of 23 warrants were issued. Investigators found that two companies in Caxias do Sul handled over R$ 34 billion between August 2019 and May 2024. The companies played a key role in money laundering and moving funds outside official banking channels.

*Criminal Networks Exposed*⬇️

Investigators uncovered alarming details. More than half of the deposits in one of the companies came from individuals with criminal records. These records had the data of laundered money, drug trafficking and smuggling. The level of these activities gives an idea of how deep the crypto related crimes have integrated into financial systems of Brazil.

Authorities also identified import traders making deposits. These transactions were likely tied to underbilled imports and tax evasion.