Brazilian authorities halted the movement of $1.6 billion worth of cryptocurrency and fiat currency during a coordinated series of raids, targeting a suspected money laundering network.
Rinse and repeat, but not today
In a major crackdown, Brazil’s Federal Police and tax officials worked together to freeze funds across crypto exchanges and traditional bank accounts.
The operation, known as Operation Niflheim, revealed the frozen funds could reach as high as 9 billion Brazilian real.
The criminal groups involved were said to be funneling money abroad, with destinations including China, the United States, the United Arab Emirates, and Hong Kong.
Authorities believe these groups may have used various cryptoassets to move nearly 55 billion real (about $9.8 billion) over the last three years.
International transfer, international group
The joint efforts between Brazilian authorities and international forces were focused on shutting down three interconnected criminal organizations.
Police raided various businesses and private properties in multiple states, including São Paulo, Brasília, and Fortaleza, and even extended their operations to the United States.
The identities of the companies and individuals involved remain undisclosed, but it’s clear that this was a well-coordinated takedown.
Investigators suspect that the groups involved may have been working together in a coordinated fashion, and their operations were extensive, covering both international and domestic territories.
Not a local gang from the streets
The money laundering networks allegedly began their illegal activities in 2021, building financial schemes with many layers designed to make their operations hard to trace.
Shell companies were likely involved, along with other tactics that helped obscure the flow of funds.
The groups under investigation are also believed to have sourced their money mainly through drug trafficking and human smuggling activities.
In addition to freezing bank accounts, the authorities seized cars and properties linked to the criminal organizations.
At least eight arrest warrants were issued, along with about two dozen search and seizure orders as part of the operation.
Police believe they’ve made huge progress in stopping these money laundering rings, though more investigations are still expected to follow.
