Brazil Jails Braiscompany Trio for 171 Years over R$1.1 Billion Ponzi Crypto Scheme

A federal court in Brazil has sentenced three individuals linked to Braiscompany, a collapsed cryptocurrency investment firm, to a total of 171 years in prison. The case is one of the country’s largest crypto-related fraud prosecutions.

Federal Judge Vinicius Costa Vidor handed down the sentences after finding the defendants guilty of running an unlicensed financial institution and laundering funds through shell companies and unregulated crypto wallets.

Fraud Scheme Collapses, Sentences Handed Down

Joel Ferreira de Souza, described as the scheme’s main operator, received a 128-year sentence. The court said he oversaw the creation and movement of funds within an informal financial network. Gesana Rayane Silva and Victor Veronez were sentenced to 27 and 15 years, respectively. They were found to have managed client funds and served as intermediaries.

The ruling follows an investigation led by Brazil’s Federal Prosecutor’s Office (MPF). Prosecutors accused five people of organizing a pyramid scheme that raised R$1.11 billion (about $190 million) from 20,000 investors.

Braiscompany promised high returns through cryptocurrency trading. However, prosecutors said the operation relied on irregular financial practices, including high-fee transactions and informal money transfers.

🇧🇷 A Brazilian court has sentenced 3 execs behind the Braiscompany crypto fraud to a combined 171 years in prison.Mastermind Joel de Souza got 128 years for laundering $190M from 20K investors. The scheme promised high crypto returns but was a pyramid all along.

You may find it interesting at FinanceMagnates.com: Brazil Police Arrested Suspect for Using Crypto to Launder $2.6 Billion.

Court Orders Asset Seizure

The court ordered the seizure of R$36 million. It is still uncertain how much of that amount can be returned to investors. Victims’ lawyer Artêmio Picanço said individuals must file civil claims promptly. If they do not, the funds may be absorbed by the state.

Two other defendants were acquitted due to a lack of evidence. The remaining individuals were found to have helped disguise the illegal origins of investor funds. The court said the structure mimicked legal investment models but was used to benefit insiders.