Brazilian Federal Police uncover large-scale cryptocurrency money laundering case, 8 people arrested

Source: PortaldoBitcoin Original Title: PF arrests 8 people connected to the “Bitcoin Pharaoh” for money laundering in Brasília Original Link:

Brazilian police dismantle money laundering case linked to “Bitcoin Pharaoh”

Brazilian Federal Police on Tuesday (9th) launched Operation Kryptolaundry aimed at uncovering a large-scale scheme involving illegal financing and money laundering through cryptocurrency in Brasília.

Reports indicate that the gang is associated with Gladison Aracício dos Santos (“Bitcoin Pharaoh”). This individual previously caused thousands of investors to suffer losses due to financial pyramid schemes run by GAS Consulting.

According to investigations, the gang circulated over 2.7 billion BRL, of which 404 million BRL was deemed illegal funds used for illicit wealth accumulation by the leadership. Overall, criminals profited illegally by at least 3.8 billion BRL from at least 62,000 victims.

Law enforcement issued 24 search warrants and 9 arrest warrants, involving 45 individuals and entities. Six were arrested in Brasília and two in Spain, in a coordinated joint operation with international authorities.

The court ordered the freezing of up to 685 million BRL in bank accounts and confiscation of urban and rural properties, including luxury homes, farms, and commercial businesses, assets allegedly used to conceal the origins of the funds.

Investigation Details

The core structure of the criminal group’s enterprise controls dozens of shell companies to disperse funds, hide assets, and purchase high-value goods.

Investigations reveal that the gang operated with a highly legitimate appearance, marketing investments in “safe” cryptocurrencies promising high returns—10% per month. To attract investors, they used meticulously crafted contracts, offline events, and intensive social media promotion.

However, according to federal police, a large portion of the raised funds was diverted to the high-ranking members of the criminal organization for illicit wealth accumulation, utilizing cryptocurrencies to prevent tracing of funds.

Individuals under investigation may face charges of financial crimes, money laundering, organized crime, false identities, and other related offenses.