Brazil Arrests Crypto Money Laundering Network, Its Value Will Make You Shake Your Head

Todaysgist, News – Brazil’s Federal Police launched an operation to dismantle three organizations linked to money laundering using crypto.

The operation, called Niflheim, was carried out in collaboration with the Federal Revenue Service, Brazil’s tax watchdog.

Quoting News.bitcoin.com, Saturday (14/9/2024) the Niflheim operation involved the issuance of 8 arrest warrants, and 19 search and seizure warrants in the cities of Caxias do Sul, Sao Paulo, Fortaleza, and Brasilia.

Brazil’s Federal Court also blocked $1.58 billion or Rp. 24.3 trillion in funds held in bank accounts and cryptocurrency exchanges. Several vehicles and properties were also seized in the raids.

Niflheim is focused on prosecuting three organizations that have collectively laundered USD 9.7 billion or Rp. 149.2 trillion using crypto since the investigation began in 2021.

Local Brazilian media reports revealed that the laundered funds were the proceeds of various illicit activities, especially drug trafficking and smuggling.

The groups were found to be using shell companies and other elements to disguise their operations and the origin of the funds received. After being laundered, the funds were sent overseas to a number of countries including the United States, the United Arab Emirates (UAE), Hong Kong, and China.

“The crimes investigated are money laundering or concealment of assets, crimes against the national financial system, ideological lies, criminal association, criminal organizations and crimes against the tax system,” the Brazilian police said.

While investigations show that these groups operate individually, they have a high degree of cooperation in their activities, so much so that police consider this may be just one organization, with its leaders living in Caxias do Sul and Orlando.

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