A federal court in Brazil has sentenced three individuals
linked to Braiscompany, a collapsed cryptocurrency investment firm, to a total
of 171 years in prison. The case is one of the country’s largest crypto-related
fraud prosecutions.
Federal Judge Vinicius Costa Vidor handed down the sentences
after finding the defendants guilty of running an unlicensed financial
institution and laundering funds through shell companies and unregulated crypto
wallets.
Fraud Scheme Collapses, Sentences Handed Down
Joel Ferreira de Souza, described as the scheme’s main
operator, received a 128-year sentence. The court said he oversaw the creation
and movement of funds within an informal financial network. Gesana Rayane Silva
and Victor Veronez were sentenced to 27 and 15 years, respectively. They were
found to have managed client funds and served as intermediaries.
The ruling follows an investigation led by Brazil’s Federal
Prosecutor’s Office (MPF). Prosecutors accused five people of organizing a
pyramid scheme that raised R$1.11 billion (about $190 million) from 20,000
investors.
Braiscompany promised high returns through cryptocurrency
trading. However, prosecutors said the operation relied on irregular financial
practices, including high-fee transactions and informal money transfers.
🇧🇷 A Brazilian court has sentenced 3 execs behind the Braiscompany crypto fraud to a combined 171 years in prison.Mastermind Joel de Souza got 128 years for laundering $190M from 20K investors. The scheme promised high crypto returns but was a pyramid all along.
— Satoshi Club (@esatoshiclub) April 18, 2025
You may find it interesting at FinanceMagnates.com: Brazil
Police Arrested Suspect for Using Crypto to Launder $2.6 Billion.
Court Orders Asset Seizure
The court ordered the seizure of R$36 million. It is still
uncertain how much of that amount can be returned to investors. Victims’ lawyer
Artêmio Picanço said individuals must file civil claims promptly. If they do
not, the funds may be absorbed by the state.
Two other defendants were acquitted due to a lack of evidence.
The remaining individuals were found to have helped disguise the illegal
origins of investor funds. The court said the structure mimicked legal
investment models but was used to benefit insiders.
This article was written by Tareq Sikder at www.financemagnates.com.
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