In a significant development concerning financial crime regulation, a Brazilian federal court has handed down exceptionally harsh sentences totaling 171 years to three individuals involved in the collapsed Braiscompany crypto scheme.
The main operator, Joel Ferreira de Souza, received the longest term: 128 years, 5 months, and 28 days. His conviction included 11 counts of money laundering, achieved through managing illicit financial activities via shell corporations and informal cryptocurrency dealings, promising high returns to investors.
Gesana Rayane Silva, who acted as a broker for the operation, was sentenced to 27 years for her involvement in moving cash and enabling unlawful financial transactions. Additionally, Joel’s son, Victor Augusto Veronez de Souza, received a 15-year sentence for his participation in associated companies used for laundering proceeds.
The court detailed a sophisticated operation that defrauded nearly 20,000 investors out of more than R$1.11 billion (around $220 million). Judge Vinicius Costa Vidor characterized Braiscompany as effectively operating a “parallel financial system” to obscure fund origins. This heavy penalty underscores Brazil’s increasingly firm stance against financial misconduct within the burgeoning digital asset space, potentially serving as a deterrent.
Authorities also ordered the transfer of R$36 million in seized assets to the Brazilian government. While these three were convicted, two other individuals implicated in the case were acquitted due to insufficient evidence. Investors globally should remain vigilant; learn more about identifying potential crypto scams.
This ruling follows the extradition of Braiscompany’s owner, Antonio Inacio da Silva Neto, and his partner, Fabricia Farias Campos, from Argentina last year. They had previously been sentenced to a combined 150 years. This case reflects a wider international trend of increased regulatory oversight in the crypto market.