Brazilian Authorities Launch Operation Fantasos
In a significant move to dismantle a cryptocurrency scam, Brazilian authorities have launched Operation Fantasos, targeting a crypto money laundering network previously connected to a $290 million Ponzi scheme. The operation took place on April 30 and involved over 50 law enforcement officers executing 11 search warrants across various locations in Rio de Janeiro, specifically in the cities of Petrópolis and Angra dos Reis.
Crackdown on Crypto Fraud
This high-profile crackdown comes on the heels of the extradition of Douver Torres Braga, the alleged mastermind behind Trade Coin Club, who was transferred from Switzerland to the U.S. in February. Operation Fantasos was not only aimed at combating the remnants of crypto-related money laundering operations but also sought to gather further evidence against Braga, who currently faces trial in the United States for wire fraud and conspiracy. If convicted, he could face up to two decades in prison.
“The operation benefited from the collaboration of several U.S. agencies, including the FBI, the Department of Homeland Security’s HSI, and the IRS Criminal Investigation unit.”
Seizures and Collaborations
Law enforcement seized assets valued at over $280 million during the operation, which included luxury items such as vehicles, watches, and jewelry, as well as cash, cryptocurrencies, computers, and mobile phones, all under the directive of a federal court order. This initiative highlights Brazil’s ongoing efforts to tackle high-level cryptocurrency fraud, which has become increasingly rampant.
Continuing Fight Against Financial Crimes
Earlier this year, the country conducted similar operations, such as Operation Alcacaria and Operation Privilege, which led to numerous arrests and the closure of various unidentified exchanges involved in money laundering activities. Just a month before, authorities unveiled Operation Niflheim, cracking down on an extensive network suspected of laundering $9.7 billion since 2021. These efforts demonstrate Brazil’s commitment to fighting financial crimes within the cryptocurrency landscape.
