Brazil busts $500M crypto laundering ring after federal police uncovered a nationwide network using digital assets to hide illicit funds.
Authorities said the group operated for five years, moving billions through shell firms and cryptocurrencies.
Nationwide police operation targets crypto fraud
Brazil busts $500M crypto laundering ring through Operation Kryptolaundry, launched on December 9 by federal investigators.
Police executed 24 search and seizure warrants across several states during coordinated raids.
Investigators focused on fraudulent crypto investments and systematic money laundering.
The police said the network presented itself as legitimate businesses offering low risk crypto returns.
Authorities estimated the group received about R$2.7 billion, equal to roughly $500 million.
Around R$404 million, or $75.5 million, was confirmed as criminal proceeds.
Courts ordered the freezing of bank accounts holding nearly R$685 million.
Judges also authorized the seizure of farms, luxury homes, and commercial properties.
Police issued nine preventive arrest warrants involving 45 people and companies.
Six suspects were detained in the Federal District, while two arrests occurred in Spain.
Links to the Bitcoin Pharaoh pyramid scheme
Brazil busts $500 crypto laundering ring with investigators linking the operation to Glaidson Acácio dos Santos.
Santos is widely known in Brazil as the Bitcoin Pharaoh.
He led Gas Consultoria, a massive investment pyramid that collapsed in 2021.
Thousands of investors lost large sums after trusting promises of guaranteed crypto profits.
Police said the new laundering ring copied methods used by Santos and his associates.
Funds moved through dozens of shell companies and crypto wallets to hide ownership.
The group relied heavily on social media marketing and public events.
They used aggressive promotion to gain credibility and recruit victims nationwide.
In October 2025, Santos received a prison sentence exceeding 19 years.
His close associate, Daniel Aleixo Guimarães, received more than 16 years in prison.
Brazil intensifies crackdown on crypto crime
Brazil busts $500M crypto laundering ring as part of a broader campaign against digital financial crime.
Earlier in July 2025, police dismantled another crypto network under Operation Deep Hunt.
That case involved over R$164 million laundered through cybercrime activities.
Authorities arrested 32 suspects and seized R$112 million in assets.
Investigators said criminals used fake credit card machines and forged documents.
Stolen funds moved through crypto before reaching shell firms and false accounts.
Brazilian police worked with Binance and blockchain analysts to trace transactions.
On-chain investigations played a key role in asset recovery.
Brazilian authorities say crypto remains a focus of organized crime investigations.
They reaffirmed commitments to financial transparency and cross-border cooperation.
