A Brazilian court has sentenced three executives associated with the defunct crypto investment firm Braiscompany to a total of 171 years in prison, marking one of Brazil’s most significant crypto fraud cases to date.
Federal Judge Vinicius Costa Vidor ruled that Joel Ferreira de Souza, identified as the scheme’s mastermind, was guilty of managing an unlicensed financial institution and laundering millions through shell companies and unregulated cryptocurrency wallets, according to local reports.
- Sentence Summary:
- Joel Ferreira de Souza: 128 years
- Gesana Rayane Silva: 27 years
- Victor Veronez: 15 years
Braiscompany defrauded approximately 20,000 investors, accumulating around $190 million by promising excessive returns through crypto trading while secretly establishing a deceptive financial system based on informal transfers and high-commission operations.
The court also mandated the seizure of R$36 million, leaving unclear how much victims can expect to recover. Artêmio Picanço, an attorney representing several victims, has cautioned that affected individuals need to file civil claims promptly to avoid the funds being taken by the state.
Notably, two defendants were exonerated due to insufficient evidence, while the court determined the others “attempted to conceal the illicit origins” of their finances by implementing operations that mimicked legitimate investment practices but primarily benefited insiders.
