According to police, masterminds involved in money laundering had offices in Orlando, Florida, and Caxias do Sul.
Around $1.6 billion worth of cryptocurrency and fiat held on cryptocurrency exchanges and bank accounts has reportedly been frozen by Brazilian police and tax authorities.
Per an official Brazilian government notice and a report from Brazilian media outlet Livecoins, the Federal Police Force (PF) and the Federal Revenue Service claim that the “total amount of money” held in frozen bank accounts and crypto wallets “could reach 9 billion real.”
Brazilian Police ‘Shut Down Three Criminal Groups’
According to officers, criminal suspects were attempting to transfer tokens and cash to recipients in Hong Kong, China, the United States, and the United Arab Emirates.
Furthermore, they asserted that during the previous three years, money launderers may have “moved 55 billion real [$9.8 billion]” through the use of anonymous cryptoassets.
Operation Niflheim was a joint police-tax service initiative that involved raids on residences and businesses across multiple states in Brazil.
They also conducted raids on American offices. The identities of the businesses and people that the police are looking into remain undisclosed.
Officers clarified that as part of the global operation, they had disbanded three different groups.
The PF is looking into potential relationships between the three organizations. The groups “may operate jointly,” in their opinion.
Group ‘Used Shell Companies’
The raids were allegedly carried out by 20 FRS employees and 130 police officers, according to the PF.
At least eight warrants for arrest and approximately twenty warrants for search and confiscation were issued by courts in Caxias do Sul, São Paulo, Fortaleza, and Brasília. They also impounded properties and took several cars.
Brazilian police busts gang that moved 3 tonnes of illegal Amazon gold https://t.co/x3mgvCHWMR pic.twitter.com/RtPVbqMSEZ
— Reuters (@Reuters) September 10, 2024
According to police spokespeople, the groups started up in 2021. They then allegedly developed complex financial operations with “several layers.”
They said the money “mainly” originated “from drug trafficking and people smuggling” networks.
They also believe that “shell companies and other tactics” were employed by the “groups under investigation.” According to officers, this was a part of an attempt to “make it difficult for the authorities” to track the funds.
The alleged group leaders are from Orlando, Florida, and Caxias do Sul, according to the spokespeople.