Brazilian Federal Police have broken up an operation that used cryptocurrencies to launder money from criminal sources and transfer it abroad. Operation Niflheim involved the issuance of eight arrest warrants and 19 search and seizure warrants against groups operating in Caxias do Sul, Sao Paulo, Fortaleza, and Brasilia. The criminals laundered more than $9 billion since 2021.
Brazilian Authorities Break Up Major Cryptocurrency Money Laundering Criminal Organizations
The Brazilian Federal Police have launched an operation to dismantle three organizations involved in money laundering using cryptocurrencies. The operation, dubbed Niflheim, was carried out in cooperation with the Federal Revenue Service, Brazil's tax watchdog, and involved the issuance of eight arrest warrants and 19 search and seizure warrants in the cities of Caxias do Sul, Sao Paulo, Fortaleza, and Brasilia.
The Brazilian Federal Court also blocked $1.58 billion in funds held in bank accounts and cryptocurrency exchanges. Several vehicles and assets were also seized.
The operation focuses on cracking down on three organizations that have collectively laundered $9.7 billion in cryptocurrency since the investigation began in 2021. Local media reported that the laundered money was the product of various illegal activities, primarily drug trafficking and smuggling.
These groups use shell companies and other entities to conceal their activities and the origin of the money they receive. Once laundered, the money is transferred overseas to countries such as the United States, the United Arab Emirates (UAE), Hong Kong, and China.
Explaining all the crimes these organizations are accused of committing, the Federal Police stated:
The crimes investigated are money laundering or concealment of assets, crimes against the national financial system, crimes of spreading false ideology, crimes of criminal association, criminal organization and crimes against the tax system.
While investigations indicate that these groups operate separately, there is a high degree of cooperation in their activities, to the point that police consider them to be one organization, with leaders residing in Caxias do Sul and Orlando.
What do you think about Operation Niflheim and the Brazilian police crackdown on these major cryptocurrency money laundering criminal groups? Let us know in the comments below.
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