Brazilian authorities seized $33 million in connection with money laundering investigations involving cryptocurrency exchanges. The operation was called an “exchange transaction” by the Brazilian police and involved six search warrants in different locations in the country. These searches are aimed at finding shell companies that use cryptocurrency exchanges for suspected money laundering.
Brazilian police seize 33 million U.S. dollars in money laundering investigation
According to the Brazilian police report, Brazilian authorities seized $33 million shell companies that used cryptocurrency exchanges for money laundering purposes. Brazilian courts have issued six search warrants on property related to the shell companies located in Diadema and the capital. These orders resulted in the freezing of different accounts from two people and 17 legal entities.
The investigation found that several companies conducted large amounts of funds transactions in a way that deceived the authorities, and then they used crypto brokerage companies to convert these funds into cryptocurrency assets that could not be linked to their original source. According to reports from the Brazilian police, some of these exchanges only operate with the support of these shell companies.
official Report It was also noted that this particular broker had a large number of transactions with at least 14 companies classified as fictitious companies or shell companies. However, the authorities did not provide the names of the exchanges or shell companies involved in the investigation.
The police believe that the brokerage company under investigation does not require customers to perform minimum KYC verification, nor does it ask the source of transaction funds, and cooperate with these shell companies to inject black market funds into cryptocurrencies to obtain profits. The Brazilian police stated that these actions were:
Designed to remit money to foreign companies through simulated sales or service provision operations, and then repatriate them to the country
Brazilian authorities responded quickly to this crime involving cryptocurrency assets and exchanges. This is the second cryptocurrency-related operation carried out by the Brazilian authorities in less than a month.Federal police Arrested Claudio Oliveira is known as the “King of Bitcoin” in Brazil for his alleged involvement in a $300 million fraud. According to an ongoing police investigation, his exchange forged a hacking attack that affected approximately 7,000 customers.
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