A Federal Police investigation, along with the U.S. Homeland Security Investigations (HSI) and various law enforcement partners, resulted in the dismantling of a transnational cryptocurrency fraud network based in Curitiba, Brazil.
As part of Operation Poyais, the Federal Police executed 20 search and seizure warrants in the states of Paraná, Santa Catarina, São Paulo, and Rio de Janeiro, Brazil, for multiple violations of Brazilian criminal statutes.
The violations include international money laundering, operating a criminal organization, fraud, and crimes against the national financial system.
“We thank the Federal Police for their ongoing partnership in combating transnational financial fraud schemes,” said HSI Acting Attaché in Brazil, Eric Cardiel. “This successful operation demonstrates the importance of international collaboration to dismantle criminal organizations operating in multiple countries around the world.”
The warrants are the culmination of a multi-year police investigation into a transnational cryptocurrency fraud network led by a 37-year-old Brazilian national and former U.S. resident.
The U.S. investigation revealed that the organization allegedly deceived investors in over a dozen countries by falsely claiming to have developed fully functional, cutting-edge cryptocurrency-related financial products. In reality, the organization is suspected of advertising fraudulent partnerships and licenses that were used to trick victims into investing millions in cryptocurrencies issued by the suspects. The cryptocurrencies ultimately had little to no value.
In January 2022, after the leader of the transnational criminal organization moved from the U.S. to Brazil, special agents from HSI stationed at the U.S. Embassy in Brasília, Brazil, requested the assistance of the Federal Police to coordinate bilateral investigative efforts. A subsequent investigation by Brazilian authorities identified similar criminal activities being conducted in Brazil, with around 4 billion Brazilian reais (US$ 800 million) moved solely through the Brazilian banking system, in addition to illicit proceeds transferred via cryptocurrencies.
HSI special agents and officers from the HSI New York El Dorado Task Force and HSI Brazil led the U.S. investigative efforts, working alongside HSI Orlando, the New York City Police Department, the New York City Sheriff’s Office, and the Florida Office of Financial Regulation. The U.S. Attorney’s Office Southern District of New York and the Department of Justice Office of International Affairs provided significant legal assistance to the investigation.