Operation Fantasos: Brazil Cracks Down on Remnants of $290M Crypto Ponzi Scheme

The Brazilian Federal Police carried out Operation Fantasos, with more than 50 officers executing 11 search and seizure warrants in various locations across Rio de Janeiro. The mastermind behind these activities was extradited from Switzerland to the U.S. in February.

Operation Fantasos Targets the Remnants of a $290 Million Crypto Ponzi Scheme in Brazil

Brazil has targeted a cryptocurrency crime organization in a massive operation once again. Operation Fantasos, executed on April 30, addressed the ongoing activities of a crypto money laundering group already impacted by the extradition of Douver Torres Braga, the mastermind behind Trade Coin Club, a $290 million crypto Ponzi scheme.

Operation Fantasos involved the cooperation of more than 50 officers, who executed 11 search and seizure warrants in the cities of Petrópolis and Angra dos Reis, both in Rio de Janeiro.

Over $280 million was seized during these operations, which targeted suspects allegedly associated with Braga. Police confiscated a boat, luxury vehicles, watches, jewelry, cash, cryptocurrencies, computers, and cell phones at the order of the federal court.

According to a press release, Fantasos had a double purpose: first, to combat the remnants of the operation that used crypto assets for money laundering purposes, and to recover evidence to strengthen the case against Braga, who is currently facing trial in the U.S.

Fantasos had the support of several U.S. agencies, including the FBI (Federal Bureau of Investigation), HSI (Homeland Security Investigations), and the IRS-CI (Internal Revenue Service Criminal Investigation).

Braga recently pleaded not guilty to wire fraud and conspiracy and faces up to 20 years in prison if convicted.

Operation Fantasos is the latest in a list of enforcement operations to combat high-level cryptocurrency schemes, which have become commonplace in Brazil.

In October, authorities launched Operation Alcacaria and Operation Privilege, which resulted in 62 search warrants, 13 arrest warrants, and the dismantling of several unidentified crypto exchanges that offered crypto money laundering services.

Before, in September, Brazil cracked down on a crypto money laundering organization that had processed over $9.7 billion since 2021.

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