Brazilian Court Delivers Harsh Sentences in Major Crypto Fraud Case
A landmark decision from a Brazilian federal court has resulted in a total of 170 years of prison sentences for key figures involved in a vast crypto Ponzi scheme that misled investors out of hundreds of millions. Two individuals face severe penalties, while others were acquitted due to insufficient evidence presented in court.
Significant Sentences in the Crypto Fraud Case
In early 2023, the Brazilian Federal Public Prosecutor’s Office launched a detailed investigation into Braiscompany, a company that lured investors with promises of an 8% monthly return on purported crypto investments. Reports indicate that Braiscompany began operations in mid-2018 but encountered financial troubles in late 2022, leading to a complete halt in investor payouts by January 2023. This cessation of payments sparked widespread concern among over 20,000 investors, who collectively lost approximately R1.11 billion ($190 million).
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The 4th Federal Court of Campina Grande, presided over by Judge Vinícius Costa Vidor, delivered a 128-year prison sentence to Joel Ferreira de Souza, identified as the operation’s primary orchestrator. Additionally, the court mandated the seizure of Souza’s assets, valued at R36.59 million ($6.3 million).
Joel’s son, Victor Augusto Veronez de Souza, received a 15-year sentence for his participation in the fraudulent activities. Another key player, Gesana Rayane Silva, was sentenced to 27 years in prison for her significant role in the Braiscompany’s deceptive structure. Each convict has been fined and ordered to compensate the defrauded investors. Meanwhile, due to insufficient evidence, the court acquitted Mizael Moreira Silva and Clelio Fernando Cabral do Ó, clearing them of all charges.
Extradition Proceedings for Braiscompany Founders
In a twist of fate, the founders of Braiscompany, Antônio Neto Ais and Fabrícia Campos, are currently in Argentina, awaiting extradition to Brazil. The couple fled Brazil in early 2024 as investigations intensified. Although they were detained by Argentine authorities, they have since been released for various legal reasons. Despite their temporary freedom, both face extradition back to Brazil, where they have already received substantial prison sentences from Judge Costa Vidor—88 years for Neto Ais and 61 years for Campos.
Current State of the Crypto Market
Amid these legal proceedings, the cryptocurrency market continues to show resilience. Recent data indicates that the total market valuation has reached $2.64 trillion, reflecting a 0.67% increase in the past day.
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