Brazilian police have revealed that they have successfully dismantled two crypto-powered money laundering rings and made arrests in multiple states across the country. The operation, codenamed Operation Bahamut, targeted groups involved in international drug trafficking.
According to an official announcement by the Federal Police, the two groups had been engaged in money laundering activities since 2017. The police believe that these groups have laundered over $417 million over the years. To carry out their investigation, the police conducted searches in almost 30 properties located in Rio de Janeiro, São Paulo, Santa Catarina, and Rio Grande do Sul. During the searches, the police seized various assets and other items related to the illegal activities.
It is worth noting that Operation Bahamut is linked to two similar operations, Tamoios and Brutium, which were launched in Rio de Janeiro in 2021 and 2022 respectively. The police suspect that the money laundered by the groups was generated from the sale of cocaine to buyers in Europe, North America, and other Latin American countries.
Cryptocurrencies played a significant role in the money laundering operations of these rings. As part of the operation, the police shut down an exchange in Rio de Janeiro that was being used by the groups to launder funds. The exchange was also used to make payments to suspected drug dealers abroad. In addition, the police discovered that the groups had established a number of shell companies to legitimize their transactions. It is estimated that up to 20 such companies were created for this purpose.
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Overall, the police have seized and frozen a total of $52 million worth of cash, tokens, and other assets. The investigation also revealed that the two groups worked independently of each other but were both operated by non-nationals. Some of the suspects were found to be living luxurious lives, residing in high-end properties and driving expensive imported vehicles. If found guilty, the ring operators could face up to 30 years in prison for fraud and money laundering.
This successful operation is part of the Brazilian police’s intensified efforts to combat crypto-related crimes. In recent months, they have been actively targeting and shutting down suspected crypto fraudsters. For example, the police recently announced plans to auction off assets seized from Trust Investing, a suspected crypto pyramid scheme operator. They have also apprehended the masterminds of the suspected crypto pyramid Braiscompany while they were trying to flee to neighboring Argentina. Additionally, a suspected crypto-powered sex exploitation ring was shut down in Minas Gerais in May.
These actions demonstrate the Brazilian authorities’ commitment to tackling cryptocurrency-related crimes and ensuring the safety and integrity of the financial system. With the increasing use of cryptocurrencies, it is crucial for law enforcement agencies to stay vigilant and employ effective strategies to prevent money laundering and other illegal activities in the digital asset space.
