Brazilian authorities have launched a major operation to disrupt a multi-billion-dollar cryptocurrency laundering scheme spanning several cities, including São Paulo, Fortaleza, and Brasília. The operation, known as 'Operation Niflheim,' is led by the Federal Revenue Service and Federal Police.
Key Details
According to a report published by TRM Labs on September 20, the investigation focuses on two companies based in Caxias do Sul. These companies allegedly facilitated the movement of approximately R$ 19 billion (around $3.6 billion) and R$ 15 billion (about $2.8 billion) between August 2019 and May 2024. The funds are suspected to be linked to a wide range of illegal activities, including drug trafficking and smuggling.
Laundering Scheme
TRM Labs reports that the money laundering scheme involved a complex, four-layered structure that included tax evaders, shell companies, and firms specializing in foreign exchange and cryptocurrency transactions. Laundered funds were routed internationally to locations such as the United States, Hong Kong, and the United Arab Emirates. Notably, a significant portion of the deposits linked to the operation came from individuals with criminal records. Authorities have carried out 23 search warrants and made eight arrests.
Other Investigations
Indian authorities recently launched an investigation into the crypto trading app 'Datameer' for allegedly defrauding over 700 people of INR 10 million (around $119,000). The app, which launched in April 2024, operated for five months and lured victims with promises of high returns because their funds were allegedly being invested in cryptocurrencies. In a separate case, Indian authorities arrested four individuals linked to a fraudulent cryptocurrency platform that defrauded victims of over $90,000. The suspects impersonated representatives of a fake trading company, GBE Crypto Trading, and promoted their scam through WhatsApp and Telegram, using virtual phone numbers and VPNs to conceal their identities.
The investigation has revealed the increasing use of digital assets in money laundering, a trend that poses growing concerns for law enforcement agencies worldwide.
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