BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
Brazilian police have requested the court to block the virtual assets of suspected digital trading fraudsters to prevent money laundering.
Brazil’s police conducted a collaborative operation with Receita Federal, raiding different states, and pleaded with the court to block the crypto holdings of alleged criminals to prevent terrorist financing and money laundering. Officers stated that the suspected fraudsters bought electronics from foreign suppliers and later sold them to domestic customers. The group may have sold goods worth about $24.3 million using this method without disclosing their activities to customs agents, tax authorities, or law enforcement. The officers claimed the scammers moved large amounts of cash and crypto transactions from digital wallets into locally registered company accounts. The firms dealing with the transactions from “fronts” are all registered in the name of agents. According to officers, these companies “disguised the origin and purpose” of the enormous amounts of cash or cryptocurrencies they were sending to their suppliers.
The operation code-named “Spinoff,” was conducted by the Federal Police in collaboration with the Receita Federal. The raids were conducted in various properties in the states of São Paulo, Mato Grosso, and Mato Grosso do Sul. Around 180 federal policemen and 74 tax collectors were granted permission to conduct 50 “search and seize” operations in the cities of Alta Floresta, Rondonópolis, Sinop, Ribeirão Preto, Cuiabá, Várzea Grande, and Ponta Porã.
A division of the Federal Criminal Court issued orders to freeze cryptocurrency wallets. However, the authorities withdrew any details regarding which cryptocurrency wallet had been asked to cooperate. The total value of the virtual holdings, to be frozen, was also not disclosed. The investigators said, “the operation aimed to dismantle the criminal organisation which is behind the complex financial scheme.”
The officers stated that a search warrant was also issued for the “addresses related to the suppliers and traders participating in the scheme.” The government may charge the suspects with stealing, tax avoidance, and laundering of funds. If proven guilty, the alleged criminals could be penalised for up to 20 years.