A major Brazil crypto fraud trial has resulted in some of the harshest sentences in the country’s history. This week, a federal court in Brazil sentenced three members of the Braiscompany pyramid scheme to a combined 171 years in prison, following convictions on multiple charges of financial crimes and money laundering.
The court ruled that Joel Ferreira de Souza, the group’s leader, orchestrated illegal crypto operations through shell companies. He received 128 years, 5 months, and 28 days behind bars for his role in the extensive scheme that targeted unsuspecting investors.
Braiscompany Sentencing: Largest Crypto Pyramid in Brazil
The Braiscompany sentencing marks a critical moment in Brazil’s crackdown on crypto-related financial crimes. According to Brazilian media, the scheme defrauded nearly 20,000 investors, resulting in losses totaling 1.11 billion Brazilian reals (approximately $220 million).
Joel’s son, Victor Augusto Verones de Souza, received a 15-year sentence for participating in companies that laundered stolen funds. Meanwhile, broker Gesana Rayane Silva was sentenced to 27 years in prison for transporting cash and aiding in illegal operations.
Massive Money Laundering Case Shakes Brazilian Crypto Industry
Brazilian prosecutors proved that Braiscompany operated as a crypto pyramid scheme, promising high returns and using new investor funds to pay old participants. Joel Ferreira allegedly conducted unregistered crypto transactions and moved large amounts of cash through unregulated channels.
The judge also ordered the seizure of 36 million reals in assets from the convicted individuals.
“This was a well-structured operation designed to deceive the public and evade financial oversight,” said a federal investigator involved in the case.
Prior Extraditions and Related Sentences
One year earlier, company founder Antonio Inacio da Silva Neto and his partner Fabricia Farias Campos were extradited from Argentina and later sentenced to 150 years in prison for their involvement in the same fraud.
The Brazil crypto fraud case sets a precedent for the region, highlighting both the risks of unregulated crypto ventures and the willingness of authorities to impose maximum sentences in large-scale money laundering cases.
