Brazilian Civil Police Seize $33 Million From Alleged Crypto Money Laundering Scheme

Fight Censorship, Share This Post!

Brazilian Civil Police Seize $33 Million From Alleged Crypto Money Laundering Scheme

In an event that crypto firms worldwide will likely pay close attention to, Brazilian police have foiled a $33 million crypto scheme after an investigation into money laundering.

The investigation took place in Sao Paulo and Diadema, where police executed six search warrants that resulted in “the Brazilian judiciary authoriz[ing] freezing accounts and seizing assets from two individuals and 17 companies,” according to Yahoo Finance

“Crypto exchanges acquired and sold bitcoin to fictitious companies fabricated to facilitate their creators’ access to the banking system,” the investigation discovered. Over the course of five months, it was revealed that one exchange transacted $1.93 million in crypto with six different fake companies. Eight other fake companies transacted another $2.9 million in crypto, the investigation found. 

Exchanges made no effort to verify the legitimacy of the companies or the transactions, according to police, who alleged that “the exchanges knowingly operated on behalf of a criminal organization dedicated to laundering money through cryptocurrencies”.

Funds were additionally sent to offshore companies and then repatriated via simulated sales or similar transactions. 

The companies also conducted “large transactions” among themselves, the report noted, before routing money to intermediaries who facilitated the acquisition of digital assets and delivered hash code to clients.

The bust comes as scrutiny on “know your client” and anti-money laundering laws for crypto exchanges has increased significantly in the United States.

Tyler Durden
Mon, 07/26/2021 – 05:45


This post has been republished with implied permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.


Fight Censorship, Share This Post!

-> Click Here to Read the Original Article <-

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.