Brazilian authorities seize $ 33 million in money laundering investigation linked to cryptocurrency exchanges – bitcoin news

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Brazilian authorities seized $ 33 million related to a money laundering investigation involving cryptocurrency exchanges. The operation, dubbed “Operation Exchange” by Brazilian police, involved six search warrants in different parts of the country. The research aimed to find shell companies that were using cryptocurrency exchanges for alleged money laundering purposes.

Brazilian police seize $ 33 million in money laundering investigation

Brazilian authorities seized $ 33 million from shell companies that Brazilian police reports have used cryptocurrency exchanges for money laundering purposes. Brazilian courts have issued six search warrants in properties linked to these shell companies located in Diadema and in the capital. These orders resulted in the freezing of different accounts on the part of two natural persons and 17 legal persons.

Investigations revealed that several companies were transferring large amounts of funds between themselves in order to deceive the authorities, and then they used a crypto brokerage to turn those funds into cryptocurrency assets that cannot be linked to their original source. . Some of these exchanges only work with the support of these front companies, according to the Brazilian police report.

The official report also states that this specific broker has dealt with larger sums of money with at least 14 companies classified as shell or shell companies. However, authorities did not provide the names of the stock exchanges or front companies involved in the investigation.

Suspected exchanges

Police believe that the brokerages surveyed, which do not require minimum KYC verifications from their clients and do not inquire about the origin of the funds being traded, are operating in tandem with these shell companies to channel black market funds to cryptocurrencies for profit. Brazilian police said these operations are:

intended to send money to companies abroad with subsequent repatriation by simulation of sales or service operations

Brazilian authorities reacted quickly to this type of crime involving cryptocurrency assets and exchanges. This is the second cryptocurrency-related transaction that Brazilian authorities have completed in less than a month. Federal police have arrested Claudio Oliveira, known as Brazil’s “King of Bitcoin” for his alleged involvement in a $ 300 million fraud. His exchange simulated a hack that affected around 7,000 customers, according to the ongoing police investigation.

What do you think of this $ 33 million seizure linked to a cryptocurrency exchange investigation? Tell us in the comment section below.

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