Brazilian authorities seized $ 33 million in connection with a money laundering investigation involving cryptocurrency exchanges. The operation, known as the “Exchange Transaction” by the Brazilian police, involved six search warrants in various parts of the country. These searches were aimed at finding mailbox companies that were using cryptocurrency exchanges for alleged money laundering purposes.
Brazilian police seize $ 33 million in money laundering investigation
Brazilian authorities have seized $ 33 million belonging to letterbox companies that, according to reports from the Brazilian police, used cryptocurrency exchanges for money laundering purposes. Brazilian courts issued six search warrants on properties associated with these letterbox companies in Diadema and the capital. These orders led to different account blocks for two natural and 17 legal persons.
The research found that several companies transacted large amounts of money with one another in order to deceive the authorities and then, through a crypto broker, converted those funds into cryptocurrency assets that cannot be linked to their original source. Some of these exchanges only operate with the support of these letterbox companies, according to the Brazilian police report.
The official one report also states that this particular broker has handled large amounts of money with at least 14 companies classified as fictitious or letterbox companies. However, the authorities did not name the stock exchanges or the letterbox companies involved in the investigation.
The police believe that the brokers under investigation, who do not require the minimum KYC checks from their customers and do not inquire about the origin of the funds made, are working with these letterbox companies to divert black market funds in cryptocurrencies and make a profit. The Brazilian police stated that these operations were:
intends to transfer money to companies abroad with subsequent repatriation by simulating sales or service operations
The Brazilian authorities have been quick to respond to this type of crime using cryptocurrency investments and exchanges. This is the second cryptocurrency-related operation Brazilian authorities have completed in less than a month. The federal police have arrested Claudio Oliveira, known in Brazil as the “King of Bitcoin”, for allegedly involved in a $ 300 million fraud. His exchange faked a hack that affected around 7,000 customers, according to the ongoing police investigation.
What do you think of this $ 33 million seizure related to a cryptocurrency exchange investigation? Let us know in the comments section below.
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