Brazil dismantles cryptocurrency money laundering scheme worth more than $9.7 billion.
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Brazil dismantles cryptocurrency money laundering scheme worth more than $9.7 billion
Cripto Tendencias by Cripto Tendencias September 21, 2024 Reading time: 3 mins reading
Brazil dismantles cryptocurrency money laundering scheme worth more than $9.7 billion
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In a large-scale operation, Brazilian authorities have dismantled a massive money laundering scheme using cryptocurrencies, which operated in multiple cities in the country. The investigation, which has captured international attention due to the magnitude of the funds involved, led to the execution of multiple arrest and search warrants in key cities such as São Paulo, Fortaleza and Brasilia.
The operation, dubbed “Operation Niflheim,” was led by Brazil’s Federal Police and Receita Federal, in collaboration with companies specializing in blockchain forensics, such as TRM Labs. According to the report published on September 20, authorities carried out 23 search warrants and 8 arrest warrants, targeting a network that allegedly used cryptocurrencies to launder funds from illicit activities such as drug trafficking and smuggling.
Details of the investigation
The main focus of the investigation fell on two companies located in Caxias do Sul, which are said to have moved approximately R$ 34 billion between August 2019 and May of this year. These companies, which apparently functioned as fronts, channeled the funds through complex cryptocurrency and currency exchange transactions, allowing the assets to be transferred to destinations abroad, including countries such as the United States, Hong Kong, and the United Arab Emirates.
