Brazilian Crypto Ponzi Scheme Leaders Sentenced to 170 Years

The leaders of a Brazilian crypto Ponzi scheme have been handed a combined sentence of over 170 years behind bars. The three leaders of Braiscompany, which perpetrated the scheme, were sentenced for defrauding investors out of nearly $190 million, or $1.1 billion Brazilian Reals.

The company’s main operator, Joel Ferreira de Souza, was handed a sentence of 128 years behind bars, while the other two perpetrators, Gesana Rayane Silva and Victor Augusto Veronez de Souza, were given sentences of 28 and 15 years, respectively. According to authorities, the trio promised “exorbitant” returns on the crypto investments of their victims in order to initially get their funds and engaged in money laundering.

Ferreira de Souza was found to be controlling crypto portfolios through third parties, as well as using shell companies to facilitate his crimes. He was convicted of 11 counts of money laundering, while Reyane Silva, the firm’s broker, was found responsible for intermediating financial transactions and transporting funds. De Souza, Joel’s son, was also found guilty of being involved with one of the companies involved in the illegal transactions.

The judge in the case said that proceeds from the scam should go directly to the government. However, Artêmio Picanço – the lawyer representing the victims of Braiscompany – argued that the fund should go directly to the victims.

The mastermind behind the Braiscompany crypto Ponzi scheme, Joel Ferreira de Souza, has been sentenced to 128 years in prison. The scheme, which defrauded investors out of $190 million, involved de Souza and two other perpetrators who were also involved in the fraudulent activities. The sentencing marks a significant victory for law enforcement in their ongoing battle against financial crimes in the cryptocurrency space. The case highlights the risks associated with investing in unregulated and unvetted cryptocurrency projects, as well as the importance of thorough due diligence and regulatory oversight. The lengthy sentence handed down to de Souza serves as a strong deterrent to others who may be considering similar fraudulent activities. The case also underscores the need for increased vigilance and education among investors to protect themselves from falling victim to such schemes. The sentencing of de Souza and his accomplices sends a clear message that financial crimes, particularly those involving cryptocurrencies, will not be tolerated and that those responsible will face severe consequences. The case serves as a reminder of the importance of regulatory oversight and the need for investors to be cautious when investing in the cryptocurrency market.