Authorities in Brazil have seized over $33 million in a crypto laundering investigation involving more than a dozen fictitious companies. Brazilian authorities have been probing the money laundering ring for some time now and claim that even the crypto exchanges were in on the crime. Brazilian civil police announced the seizure of R172 million ($33.3 million) in an official statement from two individuals and 17 legal entities.
Fictitious companies transacted large amounts among themselves to give the show of legitimacy.
According to Brazilian authorities, the seizure was the successful conclusion to Operation Exchange, which covered six warrants in Diadema, Sao Paulo. The police obtained the court orders and warrants following investigations related to brokerages that facilitated the purchase and sale of cryptocurrencies to fictitious companies that served as a backdoor to the financial system. Initial investigations showed that the bogus companies would transact large amounts among themselves to give the show of legitimacy. They then would then transfer the funds to the brokers and exchanges and swap them for cryptocurrencies.
The crypto exchange traded $1.93 million worth of crypto with at least six fictitious companies.
Brazilian police alleged that one of the exchanges has a history of dealing almost exclusively with bogus companies. The cryptocurrency exchange traded $1.93 million in digital currencies with at least six fictitious companies in a period of just five months. Its books also reflect that eight other companies acquired $2.9 million in digital currencies at the time. The police further said the involved crypto exchanges knowingly facilitating money laundering, claiming that the platforms were reaping huge profits from the trade. Brazil has a history of the use of cryptocurrencies in criminal activities, with quite a number being thwarted by authorities.
