Brazil shuts down $500M crypto laundering group

The Brazilian Federal Police seized around R$2.7 billion, or $500 million, linked to a crypto money laundering ring that has been active for five years.

As part of “Operation Kryptolaundry,” the Brazilian police carried out 24 search-and-seizure warrants across the country.

The police launched the special operation on December 9 with the goal of taking down fraudulent investment offerings and money laundering via cryptocurrencies.

Crypto launderers linked to Bitcoin Pharaoh

According to local reports, the crypto ring is connected to Glaidson Acácio dos Santos, known as the Bitcoin Pharaoh. The Brazilian police captured him back in 2021.

Santos was the boss of Gas Consultoria, one of the biggest investment pyramid schemes in Brazil. Thousands of Brazilians lost millions of dollars after investing in Gas Consultoria.

The crypto launderers followed the approach of the Bitcoin Pharaoh. They laundered millions of dollars through a mix of shell companies and cryptocurrencies since 2021.

The criminals lured people through crypto investment opportunities. They advertised heavily on social media and pushed intense campaigns. They also organized meetups to build strong connections and trust with their victims.

The legal entities behind the crypto launderers appeared to operate legally and offered “safe investments” in crypto with high returns.

The Brazilian Federal Police discovered that the crypto criminal ring received around R$2.7 billion, or $500 million. The criminals moved the funds, and around R$404 million, or $75.5 million, were labeled as illicit funds.

A huge chunk of this amount was concealed and sent to the leaders of the ring through crypto and dozens of shell companies.

Courts in Brazil ordered the freezing of bank accounts containing around R$685 million, or $128 million. The courts also gave the green light to seize farms, commercial properties, and luxury real estate.

The police carried out nine preventive arrest warrants, targeting 45 individuals and companies. Based on local news outlets, six people had been arrested in the Federal District and two in Spain.

The apprehended people will face criminal charges of financial offenses, money laundering, organized crime, document forgery, and other related charges.

In October of 2025, Santos or the Bitcoin Pharaoh, was sentenced to over 19 years in prison for criminal and corruption activities. Santos’s right-hand man, Daniel Aleixo Guimarães, was sentenced to over 16 years.

Brazil busts $164M crypto cybercrime ring

In early July of 2025, Brazilian authorities took down a complex crypto cybercrime ring that laundered over R$164 million, or $32 million. This was part of another plan by the Brazilian police called “Operation Deep Hunt.”

The operation was successful in exposing a network of criminals who used fake credit card machines, forged documents, and engaged in illicit drugs. It resulted in the arrest of 32 people and the seizure of R$112 million, or $21 million.

According to TRM Labs, the cybercrime ring utilized dark web marketplaces to acquire fake banknotes, cloned credit cards, and fake documents.

The criminals then stole funds and laundered them using crypto. They then dispersed them through shell companies and fake bank accounts to hide the origins of the funds. The group re-injected the laundered proceeds into the economy through property and car purchases.

Brazilian authorities successfully seized the illicit funds after working with Binance’s investigation team and other entities that helped with on-chain investigations.

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