The operator of a major Brazilian crypto Ponzi scheme, Joel Ferreira de Souza, has been sentenced to 128 years in prison by a Brazilian court.
De Souza was the mastermind behind the Braiscompany crypto scam, which illegally operated financial institutions and engaged in money laundering.
Two other individuals involved received sentences of 27 years and 15 years, respectively.
The Braiscompany scheme defrauded approximately 20,000 investors, raising a total of $190 million.
The court also ordered the confiscation of assets worth about 36 million reais (roughly $7 million USD).
Braiscompany lured investors with the promise of high returns through cryptocurrency investments but operated as a Ponzi scheme, using new investors’ funds to pay earlier participants.
The scale and impact of the fraud led to one of the harshest sentences ever handed down for a crypto-related crime in Brazil.
This sentencing marks a significant moment in Brazil’s efforts to combat large-scale financial crimes in the cryptocurrency sector.
The Braiscompany crypto scam was uncovered through a combination of investor complaints, law enforcement investigations, and cross-border cooperation.
The first red flags emerged in December 2022 when users reported being unable to withdraw funds from the platform.
The company abruptly shut down its operations in early 2023, with surveillance footage later surfacing showing employees clearing out the São Paulo offices.
Brazilian authorities launched Operation Halving in May 2023, executing raids and issuing multiple arrest warrants for company staff.
Key suspects Arthur and Sabrina Lima were apprehended near the Brazil-Argentina border while attempting to flee the country. Other executives like Antonio Neto and Fabricia Campos remain international fugitives on Interpol's red list.
Authorities tracked the movement of approximately $160 million in customer funds that executives allegedly absconded with after the shutdown.
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