Brazilian Police Uncover Drug Gang-Linked Crypto Money Laundering Ring

Sao Paulo Civil Police in Brazil have uncovered a sophisticated crypto laundering operation linked to a major drug gang – the First Capital Command (PCC).

The PCC gang orchestrated the money laundering scheme with the help of a crypto brokerage and virtual bank, CNN reports. Police chief Fabricio Intelizano told the publication that the gang apparently operated a company as a crypto exchange.

The company made financial transactions of around 500 million Brazilian reais ($88.6 million) during the investigation. Further, the operation involved checks worth 55 million reais ($8.9 million), seized from the company’s headquarters in Sao Paulo.

The Civil Police did not release the name of the crypto company involved in the laundering case. However, the company was in the name of 23-year-old women, daughter of a candidate for city council in Mogi das Cruzes.

The report further said, the crypto-linked laundering was aimed to finance organized crime group agents for municipal elections, this year.

The Civil Police of Sao Paulo raided across major cities on Tuesday, arresting 13 people involved in the scheme.

Brazil Police’s Long-Standing Crypto Crime Decodes

Brazilian police have been vigilant in busting crypto-related crimes across the country in recent times. For instance, in October 2023, the Brazilian police and Interpol swooped on a gang of suspected ‘gunpoint crypto thieves.’ These accused were involved in robbery and extortion-related offenses.

Earlier in June that year, police and tax officers in Brazil launched a major operation. They raided six domestic crypto exchanges in a massive international crime and money laundering probe.

In yet another case, officers dismantled two groups they claimed had been active in “international drug trafficking.” The two groups were involved in crypto money laundering, taking down combined total of over $417 million since 2017.

Meanwhile, Brazil’s central bank has been crafting plans for crypto regulations and aims to finalize by year end. These regulations would establish rules to verify and enforce greater transparency around the potential benefits and risks of crypto investments.