A transnational cryptocurrency fraud ring with its headquarters in Curitiba, Brazil, was busted on October 6 as a result of an investigation by the Brazilian Federal Police, U.S. Homeland Security Investigations (HSI), and numerous law enforcement partners.
20 search and seizure warrants were carried out by the Brazilian Federal Police as part of Operation Poyais in the Brazilian states of Parana, Santa Catarina, Sao Paulo, and Rio de Janeiro for various criminal offenses.
International money laundering, running a criminal enterprise, fraud, and crimes against the domestic financial system are among the infractions.
The investigation turned up several possible legal transgressions, including money laundering, fraud, offenses against Brazil’s national financial system, and running a criminal enterprise.
Unidentified 37-year-old Brazilian national and former US resident who is the suspected ringleader is accused of tricking thousands of investors in over 12 nations into thinking his company had developed brand-new crypto-focused products.
In addition, Brazilian authorities found that the suspect told his victims that they would receive monthly returns on their investments and that his company employed a sizable staff of skilled crypto traders who would buy and sell the lent digital assets on their behalf in order to make a profit.
Additionally, it is claimed that the suspect’s businesses used investor funds improperly to buy luxury goods and real estate.