Brazil’s $4M Crypto Scam: Wallets Frozen Nationwide

Operation Mirage has frozen crypto wallets in Brazil following the discovery of a massive investment fraud that defrauded 40 victims of millions of dollars.

On Wednesday, the Civil Police of Rio Grande do Sul initiated Operation Mirage. They attacked a scam of internet fraud through social media. There are five suspects on preventive arrest warrants.  

According to LiveCoins Brasil, warrants were conducted by investigators in Goiases and São Paulo. The raid froze 85 bank accounts, confiscated vehicles, and even blocked cryptocurrency wallets.  

The raid was headed by the Special Cyber Investigations Police Station. Officers confiscated thousands of SIM cards, cell phones, computers, and luxury cars.  

Social Media Ads Lured Unsuspecting Investors

Fraudsters were also advertising themselves through sponsored content on social media. They assured great returns on investments in Brazilian stock. The fraudsters also formed closed networks in which they exchanged counterfeit investment tips.  

At least 40 victims were reported by investigator Isadora Galian. R$4 million was lost by the individual. The fraud was carried out in a number of Brazilian states.  

Victims used Pix transactions to send money to company accounts. The fraudsters asserted that the funds were converted to crypto assets. An untrue crypto site then displayed fake balance and profits.  

The scammer moved the capital of the victim to the company accounts and then turned it into crypto assets on the illegal platform of the scammers, as Galian explained. Balances and profits were falsely inflated to appeal to new investments.  

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Fake Losses Blamed on Victim Errors

The platform initially showed fake profits. Then there were inexplicable and sudden losses. The victims were accused of operational errors by the criminals, who attributed all losses to them.  

Officials have not identified the type of technique applied to seal the wallets. Brazilian crypto exchanges are able to freeze the account balances easily, yet the operation did not explain any recoverable crypto assets.  

Galian cautioned potential investors on suspicious deals. Assurances of above normal returns are warning signs. She stressed that one should verify first before investing.  

Galian said: Before committing even one cent, look into whether the company is duly registered. Registration with the CVM and Central Bank.  

Rio Grande do Sul, Rio Paulo, and Goiases police collaborated. Operation Mirage is a significant crackdown on Brazilian fraud related to cryptocurrencies.

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