- Brazil jails Braiscompany ringleader for 128 years in $190M crypto fraud.
- Operation Halving traced crypto laundering across shell firms, wallets.
- Brazil eyes tighter crypto rules after Ponzi collapse stuns investors.
Joel Ferreira de Souza, a central figure in Brazil’s largest crypto fraud case, has been sentenced to over 128 years in prison. The scheme, operated through Braiscompany, promised 8% monthly returns to over 20,000 investors, ultimately collapsing in early 2023. In a post by CryptosRus, the operation was described as one of the most damaging pyramid schemes in Latin America’s crypto market.
The Federal Court of Campina Grande issued the sentence alongside convictions for Gesana Rayane Silva and Victor Augusto Veronez de Souza, who received 27 and 15 years, respectively. All were found guilty of money laundering, operating an unlicensed financial institution, and running a criminal organization. Authorities ordered the seizure of R$36 million (~$6.2 million) in assets tied to investor losses exceeding $190 million.
Operation Halving and Cross-Border Ramifications
The scheme’s unraveling prompted Brazil’s Federal Police to launch Operation Halving, which exposed a vast laundering network spanning multiple shell companies and unregulated wallets. According to a report by G1, the court detailed how funds were obscured across decentralized rails and offshore entities, complicating asset recovery efforts. The operation also revealed fabricated crypto partnerships used to lure victims.
Founders Antônio “Neto” Ais and Fabrícia Farias Campos were apprehended in Argentina in February 2024 and remain under house arrest pending extradition. The couple previously received a combined sentence of nearly 160 years for leading the pyramid. However, ongoing delays in their return to Brazil underscore the jurisdictional hurdles facing international crypto crime enforcement.
Regulatory Response and Investor Fallout
The Braiscompany collapse highlights growing regulatory pressure in Brazil’s crypto sector. The country leads Latin America in Bitcoin ETF approvals, yet continues to grapple with investor protection in unregulated markets. According to a report by O Globo, the lack of clear custodial oversight allowed fraudulent platforms to operate unchecked under the guise of legitimate blockchain investments.
Lawyers representing victims urged immediate civil claims before the state seizure of funds is finalized. Moreover, the court emphasized the need for a unified digital asset framework to deter repeat offenses. As Brazil refines its crypto oversight, this case serves as a stark reminder of unchecked risk in decentralized finance.
