- Criminal gang started operations in 2019
- Ringleaders jailed for over 21 years
- Gang used crypto to launder ransom fee from Rio kidnapping
A Federal court in Brazil has jailed 14 people who used Bitcoin to help them launder over $95 million worth of criminal profits from drug trafficking and kidnapping.
The court jailed two unnamed ringleaders for over 21 years, with 12 others receiving prison sentences ranging from 10 to 17 years, the Brazilian Public Prosecutor’s Office wrote. One of the duo was identified as a prison security officer.
“The group’s main function was to hide the nature, origin, movement, and ownership of assets obtained through cross-border drug trafficking and violent crimes,” the office said. “These violent offenses included obtaining ransom money from a kidnapping victim in Rio de Janeiro.”
The convictions came after police carried out an operation codenamed Fertile Land last year. The operation uncovered a criminal network that operated from April 2019 to July 2024 in the states of Minas Gerais and Paraná.
The operation was coordinated by the Federal Police and the Special Action Group to Combat Organized Crime.
Shell companies
The Brazilian publication Livecoins reported that the investigation “revealed that the group used Bitcoin and other cryptocurrencies” to launder money for a wider criminal network.
The defendants operated an “accounting department” for the network that made use of bogus tax identification numbers, fake accounting records, and a number of shell companies.
“The group used methods that included [...] banking operations, a parallel international clearing system, and transferring large sums of money to the cryptocurrency market,” the office explained.
The defendants pretended to be working in the food trading, cattle breeding, luxury goods, and swimwear sectors.
The court seized cash, “expensive houses in the Triângulo Mineiro region,” as well as several luxury cars, traditional financial assets such as bonds, and a private jet.
The presiding judge also ordered the liquidation of all the shell companies involved and issued the convicts with heavy fines.
Tim Alper is a news correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.
