Brazil Sentences Crypto Mastermind to 128 Years in Massive Fraud Case

Three executives behind Brazil‘s massive Braiscompany cryptocurrency scheme received combined prison sentences of 171 years, concluding one of the country’s largest crypto fraud prosecutions to date, according to court documents released this week.

Federal Judge Vinicius Costa Vidor found Joel Ferreira de Souza, identified as the operation’s architect, guilty of operating an unlicensed financial institution and laundering millions through shell companies and unregulated cryptocurrency wallets. De Souza received the harshest sentence at 128 years imprisonment, while accomplices Gesana Rayane Silva and Victor Veronez were sentenced to 27 and 15 years respectively for their roles managing cash and facilitating transactions.

The ruling follows an extensive investigation by Brazil’s Federal Prosecutor’s Office (MPF), which accused five individuals of orchestrating a pyramid structure that raised approximately R$1.11 billion ($190 million) from nearly 20,000 investors, according to local media reports.

Massive Fraud Operation Uncovered

Prosecutors successfully demonstrated that Braiscompany operated by promising outsized returns through cryptocurrency trading while actually running a parallel financial system. The operation relied on informal transfers and high-commission operations designed to enrich insiders rather than deliver returns to investors.

In his ruling, Judge Vidor stated the defendants “acted to disguise the illicit origin” of the money, creating operations that mimicked legitimate investment practices but were fundamentally fraudulent. The scheme’s sophisticated structure allowed it to operate for several years before authorities intervened.

Two other defendants were acquitted due to insufficient evidence connecting them to the core fraud operations.

Asset Recovery Challenges for Victims

The court ordered the seizure of R$36 million ($6.1 million) in assets connected to the scheme, though this represents only a fraction of investor losses. According to Artêmio Picanço, an attorney representing multiple victims, those affected must file civil claims promptly before the seized funds potentially revert to state control.

“Victims need to organize quickly to file their claims,” Picanço advised affected investors. “The legal process for asset recovery is complex, and there’s significant risk that without timely action, recovered funds may be absorbed by the government rather than returned to those who lost their investments.”

The Braiscompany case highlights ongoing challenges in Brazil’s cryptocurrency regulatory environment, where authorities continue working to balance innovation with investor protection in the rapidly evolving digital asset space.

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