Brazilian authorities have made a significant breakthrough in their fight against organized crime by confiscating cryptoassets worth $45,000 in a major raid on a protection racket ring targeting businesspeople in the south of the country. The operation, named Operation Timeo, was carried out by the state’s Polícia Civil (PCRS) officers in multiple cities in the state of Rio Grande do Sul.
According to reports from Portuguese-language media outlet Livecoins, the gang’s ringleaders are believed to be prisoners orchestrating the entire racket from Brazilian jails. The suspects allegedly used crypto to launder funds obtained through a fraud network targeting owners of small automobile trading garages. The scheme reportedly involved blackmailing the owners and processing the illicit funds through cryptocurrency transactions.
During the raids, officers seized tokens from crypto wallets and froze suspects’ bank accounts. One suspect was also charged with carrying a firearm without a permit. The PCRS probe involved a total of 60 agents executing 11 search and seizure warrants in cities including Porto Alegre, Novo Hamburgo, São Leopoldo, Portão, Cachoeirinha, and Imbé.
The organized crime-fighting department in São Leopoldo led the operation, which resulted in the freezing of 13.3 million reais ($2.3 million) in bank accounts belonging to 11 suspects. The police did not disclose the specific methods used to seize the crypto or the type of coins involved. They suspect that the gang targeted auto garage owners in several cities, including Estância Velha, Novo Hamburgo, and Sapiranga.
The ongoing investigation involves 10 suspects and one company with links to inmates previously arrested in connection with Operation Timeo. Police believe that further investigations may uncover a broader criminal network involved in extortion and money laundering. It is suspected that the group and other criminals are using crypto and shell companies to launder millions of USD extorted from law-abiding citizens in protection racket schemes.
The recent seizure of cryptoassets is a significant step in combating organized crime and money laundering in Brazil. Authorities are working diligently to dismantle criminal networks and ensure the safety and security of businesses and individuals in the country. The use of cryptocurrency in illicit activities poses a challenge for law enforcement, but with continued efforts and cooperation, they are making progress in disrupting criminal operations.