Landmark Ruling in Brazil’s Cryptocurrency Fraud Case
In a landmark ruling, Brazil’s Federal Court has resolved a high-profile cryptocurrency fraud case involving the platform Braiscompany, as reported by CoinDesk. The court’s decision led to an unprecedented total of 171 years in prison for three key defendants linked to the operation.
Judge Vinicius Costa Vidor found that Joel Ferreira de Souza, the orchestrator of the scheme, illicitly funneled millions through a shell corporation and non-compliant cryptocurrency wallets, violating laws governing financial institutions.
Details of the Fraudulent Operation
The fraudulent operation enticed around 20,000 investors by promising a staggering 20% monthly return, capitalizing on a multilevel marketing strategy that ultimately resulted in losses exceeding 1 billion Brazilian reais (approximately $190 million).
Sentences of Key Defendants
De Souza received the heftiest sentence of 128 years due to his roles in financial crimes and money laundering.
Additionally, Gesana Rayane Silva, who served as the marketing director, was handed a 27-year sentence for her involvement in false advertising and assisting in money laundering activities.
Lastly, the technical lead, Victor Veronez, faced a 15-year prison term for manipulating transaction records to deceive investors.
Significance of the Case
This case represents a significant moment in Brazil’s regulatory response to cryptocurrency operations that operate outside legal boundaries.
