Brazilian Crypto Ponzi Scheme: 128-Year Sentence
Brazilian Crypto Ponzi Scheme Operator Receives 128-Year Sentence
A Brazilian court delivered a significant blow to cryptocurrency fraud on April 18, 2025, sentencing Joel Ferreira de Souza to 128 years in prison for his role in the $190 million Braiscompany Ponzi scheme. This massive scheme, operating from June 2018 to early 2023, defrauded approximately 20,000 investors who were promised unrealistic daily returns of 8% through cryptocurrency trading.
The court found De Souza guilty of operating an unlicensed financial institution and money laundering, identifying him as the mastermind behind the fraudulent operation. Prosecutors detailed Braiscompany's use of shell companies and unregulated crypto wallets to launder the stolen funds. Two other executives received lesser sentences: Gesana Rayane Silva (27 years) and Victor Veronez (15 years). The court acquitted Mizael Moreira Silva and Clélio Fernando Cabral do Ó due to insufficient evidence.
Details of the Braiscompany Scheme
Braiscompany marketed itself as a legitimate crypto trading firm, attracting investors with promises of high returns and aggressive marketing tactics. Investors were required to lock in their funds for a year, with Braiscompany claiming profits stemmed from proprietary trading software—a claim that proved to be false. Withdrawals were repeatedly delayed throughout 2022, ceasing entirely by January 2023. The subsequent collapse in February 2023 triggered "Operation Halving," a Federal Police investigation leading to the arrests of the main perpetrators.
Company founders Antônio Ais and Fabrícia Farias Campos, who fled to Argentina, were separately sentenced to 88 and 61 years respectively in February 2024, with their extradition approved.
Impact on Investors and the Need for Regulation
The R$36 million (approximately $6 million USD) in seized assets will be distributed to victims through civil claims. This case underscores the critical need for stronger cryptocurrency regulations in Brazil. The lack of oversight allowed Braiscompany to operate unchecked, causing significant financial harm to thousands of individuals. The sophistication of the scheme, masking illegal activities through complex financial structures, highlights the challenges faced by authorities in combating such sophisticated financial crimes.
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