Brazil’s Federal Police Seize Crypto in Billion-Real Laundering Crackdown

TLDR:

• Brazil’s Federal Police carried out raids in São Paulo and Araçatuba, arresting a suspect in a crypto laundering case.
• Authorities froze accounts and seized assets, including cars, weapons, and crypto, linked to a billion-real laundering network.
• Investigations found the group used shell companies and crypto exchanges to move more than R$1 billion in one year.
• Federal officers said the criminal group imported goods illegally, then laundered proceeds through e-commerce and digital assets.

---

Federal Police in Brazil have launched a sweeping operation against a laundering network that relied heavily on cryptocurrency flows. 

The investigation, running for nearly two years, exposed how a criminal group used shell firms, illegal imports, and exchanges to move vast sums. Court-approved raids across São Paulo state led to arrests and large seizures. 

According to officials, crypto transactions were central to masking funds tied to smuggling and tax evasion. The operation, carried out on Tuesday, signals growing scrutiny of digital assets in financial crime cases.

Federal Police Seize Crypto, Cars, and Weapons

The operation, named Hawala, unfolded in the cities of Araçatuba and São Paulo. 

Federal officers executed five search and seizure warrants issued by the Federal Court of São Paulo. Authorities also froze accounts and ordered the seizure of assets belonging to suspects under investigation.

Items collected included six mobile devices, flash drives, drones, and storage hardware believed to hold transaction records. Officers seized luxury cars, a pistol, a shotgun, ammunition, and imported merchandise such as phones, watches, and perfumes. 

A suspect was taken into custody and transferred to the Federal Police station in Araçatuba.

According to the release, the network imported goods illegally and sold them on a large online marketplace. This system created an untaxed revenue stream that was later laundered through shell companies. 

Investigators said the scheme combined old smuggling tactics with new crypto-based laundering techniques.

Federal Police explained that the goal was to disguise profits from illegal trade. By dispersing funds across multiple platforms, the group made tracing more complex. The seized crypto assets will remain under judicial control while investigations continue.

Criminal Group Used Crypto Exchanges to Launder Billions

Authorities revealed that one company involved in the network moved more than R$1 billion in a little over a year. 

Funds were distributed through several crypto exchanges, making tracking difficult. Investigators stated that this method helped the group bypass traditional banking scrutiny.

Crypto transfers formed a core part of the laundering process. Federal Police confirmed that shell companies were used as fronts to move funds before converting them into digital assets. These exchanges then facilitated shifting proceeds abroad.

Charges under consideration include tax evasion, currency evasion, embezzlement, money laundering, and criminal association. Officials stressed that the use of crypto added complexity to the probe, but evidence from confiscated hardware is expected to expand the case.

Investigators are continuing to analyze seized devices and accounts. More arrests could follow as authorities trace links between importers, intermediaries, and exchanges. 

Operation Hawala underscores how deeply crypto is now embedded in laundering schemes across Brazil.

The post Brazil’s Federal Police Seize Crypto in Billion-Real Laundering Crackdown appeared first on Blockonomi.