Brazilian and US authorities uncover $768 million crypto fraud scheme

The suspected company offered investors returns of up to 20% per month on investments in digital assets

08.10.2022 - 08:15

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2 min

What’s new? Authorities in the US and Brazil uncovered a fraudulent cryptocurrency scheme that is responsible for more than $768 million in illegal transactions. A press release from law enforcers said the organization, based in Curitiba, Brazil, defrauded investors in more than a dozen countries by offering monthly returns of up to 20% on investments in digital assets.

Press release from US and Brazilian authorities

More details about the case. The company is suspected of promoting itself by making false claims of partnerships with other projects and licenses. Misled investors invested millions of dollars in cryptocurrencies issued by the company. Law enforcement officials said these assets “eventually held little to no value.”

The unnamed firm’s violations include international money laundering, operating a criminal enterprise, fraud, and crimes against the nation’s financial system. Law enforcement investigations had been ongoing for several years.

The authorities have already charged the man who allegedly headed the criminal organization, he turned out to be a 37-year-old Brazilian citizen and former US resident Francisley Valdevino da Silva. On October 6, Brazilian police issued 20 search and arrest warrants as part of their investigation into the fraudulent group.

On September 22, the Brazilian Federal Police raided six unnamed cryptocurrency exchanges as part of an investigation into suspected money laundering and tax evasion. Back then, police executed 101 criminal court warrants, including two arrest warrants and 37 search and seizure warrants. Law enforcement also froze the suspects’ assets, totaling $238 million.

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