$178M Brazilian ‘Crypto Scam Ring’ Flees Abroad – Where Did Masterminds Go?

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated: 

June 26, 2023 06:55 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The Brazilian operators of a suspected crypto scam reportedly fled the country just before the police launched a probe into the company behind the project.

Police think the company raised some $178 million in investments from around 7,500 people.

The Brazilian media outlet Livecoins reported that five individuals left the country, with some destined for Dubai and others heading to the USA.

The alleged scam’s masterminds promised victims returns of up to 40% on their investments.

Police in the southern state of Santa Catarina said they had raided a number of addresses and “seized 15 luxury cars.”

They described the outfit as a “cryptocurrency pyramid” that offered “monthly fixed returns” of “20% to 40%” on “crypto investments.”

The individuals are believed to have operated a company in Florianópolis, Santa Catarina’s capital and second-largest city.

In operation codenamed Crypto X, police swooped along with the Fraud Office and the Money Laundering Investigation Office, as well as public prosecutors.

Some 18 properties were searched, but no arrests were made.

Officers added that the alleged masterminds had likely committed “money laundering” offenses.

Police said the alleged scammers had likely “hidden assets” with the help of “intermediaries.”

A prosecution official was quoted as stating:

“The operation was important. It provided a way of retaining the assets of those being investigated in order to try to recoup the damages suffered by the victims.”

The official confirmed that a search for the alleged perpetrators was now underway and that they would be “held accountable” for their actions.

Increase in Brazilian ‘Crypto Scams?’

Crypto scams have been on the rise in Brazil in recent months.

In March, the sporting world was rocked by news of a purported scam allegedly involving some of the nation’s top football (soccer) players.

Police also moved to bust a suspected sextortion ring that used crypto.

And a company suspected of being at the center of a large-scale pyramid-style crypto scam allegedly emptied its offices amid a police investigation.