Brazilian police and tax officials have made a significant move by freezing approximately $1.6 billion worth of crypto and fiat assets held in crypto exchanges and bank accounts. According to an official Brazilian government notice and a report from Brazilian media outlet Livecoins, the Federal Police Force (PF) and the Federal Revenue Service have claimed that the frozen funds could reach up to 9 billion real.
The Brazilian Police Take Down Criminal Groups
The authorities revealed that criminal suspects were attempting to transfer fiat and tokens to recipients in China, the United Arab Emirates, the United States, and Hong Kong. Additionally, they suggested that money launderers might have used unspecified cryptoassets to move a staggering 55 billion real ($9.8 billion) over the last three years.
Operation Niflheim, a joint initiative between the police and tax service, involved conducting raids on businesses and personal addresses in various Brazilian states, as well as in the United States. The identities of the companies and individuals under investigation were not disclosed by the police.
During the international operation, three separate groups were shut down by the authorities. The PF is currently looking into possible connections between these groups, suspecting that they may be operating jointly.
Uncovering the Use of Shell Companies
A total of 130 police officers and 20 Federal Revenue Service employees were involved in the raids. Courts issued at least eight arrest warrants and approximately two dozen search and confiscation warrants in Caxias do Sul, São Paulo, Fortaleza, and Brasília. Furthermore, numerous motor vehicles were seized, and properties were impounded.
Police officials stated that the groups in question began their operations in 2021 and subsequently developed intricate financial schemes with multiple layers. The funds were believed to originate mainly from drug trafficking and people smuggling networks.
The groups being investigated were suspected of utilizing shell companies and other tactics to complicate the tracking of funds by authorities. It was mentioned that the alleged leaders of these groups are based in Caxias do Sul and Orlando, Florida.
