In an official announcement by the Federal Police, Brazilian authorities have dismantled two cryptocurrency money laundering schemes, with suspects being arrested in four states across the country. Notably, these two groups were reportedly involved in “international drug trafficking” activities prior to their apprehension.
The police operation, codenamed “Bahamut,” resulted in the arrest of at least 11 individuals. Around 30 assets in four states (Rio de Janeiro, São Paulo, Santa Catarina, and Rio Grande do Sul) were searched, and officers were authorized to seize assets and related items, including cash, cryptocurrency tokens, and other assets valued at 52 million USD.
The arrested groups are accused of using cryptocurrency to launder their money, and officials stated that they had shut down an “exchange” in Rio de Janeiro. The exchange operations appeared to facilitate payments for suspected drug traffickers with operations based overseas.
Brazilian police have not yet identified the mastermind behind the money laundering operation, but it is believed that the groups were likely led by individuals outside of Brazil. If convicted, they could face up to 30 years in prison.