TL;DR
- Three Braiscompany executives were sentenced to a total of 171 years in prison for leading a crypto scam that affected over 20,000 people.
- Joel Ferreira de Souza received a 128-year sentence for operating a financial entity without a license and laundering money through shell companies and unregulated wallets.
- The pyramid scheme raised $190 million through false promises and operated outside the formal financial system using inflated commissions and informal transfers.
A federal court in Brazil sentenced three individuals responsible for the Braiscompany crypto scam to a total of 171 years in prison. The ruling targeted the leaders of one of the largest cryptocurrency scams in the country, which raised approximately $190 million by making false profitability promises to more than 20,000 people.
Who Were Sentenced?
Joel Ferreira de Souza, considered the main orchestrator, received the harshest penalty: 128 years for operating an unlicensed financial entity and laundering large sums of money. According to the ruling, he used shell companies and unregulated crypto wallets to divert the funds. Alongside him, Gesana Rayane Silva and Victor Veronez were sentenced to 27 and 15 years respectively, for participating in the fund management and acting as intermediaries.
The case exposed a pyramid structure that promised profits through crypto-related operations. However, authorities confirmed that the scheme operated outside the formal financial system, relying on informal transfers and inflated commissions to remain afloat.
The Federal Public Ministry filed charges against five individuals for running the fraud. Two were acquitted due to lack of evidence. The rest, according to the judge, organized activities aimed at concealing the illegal origin of the funds, simulating investment strategies that in reality only benefited the scheme’s administrators.
What Should the Scam Victims Do?
The court also ordered the seizure of R$36 million connected to the operation. However, it remains unclear how much victims will be able to recover. One of the attorneys representing those affected warned that anyone wishing to claim part of those funds must file civil lawsuits before the State absorbs them.
The conviction sets an important precedent in the country regarding financial crimes tied to the use of cryptocurrencies. Although these types of schemes have multiplied in recent years, firm sentences could serve as a warning to other operators attempting to replicate similar structures. The Braiscompany case highlights the need for stricter oversight on projects handling crypto investments without proper controls..
