An operation dubbed Operation Egypto has been a success and led to the shutting down of a crime cartel operating an unlicensed financial institution in Brazil. The latter operation brought together a contingent of authorities from two agencies, the Federal Revenue Agency and Brazilian Federal Police, and now investors can sleep better.
The above groups had lured over 55,000 investors into investing in crypto and expect a 15% return from their capital. However, the group was running an unregistered entity. From the 55,000 investors, the group made over $200 million.
Furthermore, apart from the above figure, authorities believe the group raised R850 million ($210 million) from investors in February 2019. However, authorities believe the number might amount to R$1 billion, which is $248 million.
From 10 arrests warrants and 25 search and seizure orders, authorities were able to bring down the cartel. The latter orders gave them permits to exercise their duty in eight cities and arrest several people. The arrests were made in the following cities São Paulo (SP), Florianópolis (SC), Laguna (SC), Campo Bom, Estância Velha, Esteio, Porto Alegre, and Novo Hamburgo. From the eight cities, the masterminds who were are five partners, two couples alongside one man.
Apart from the five, the latter’s wife is also in custody alongside four employees of the firm. From them, the police seized 36 luxury vehicles, an undisclosed amount of money, got hold of real estate from the group and also got the courts to issue a judicial blockade of assets on behalf of companies and individual.
Per the statement from the police, the above group used proceeds raised from investors to invest in low stake investments and also used the cash for their personal needs. While the accused will face charges of stealing from investors, authorities are still carrying out further investigations. The group is being investigated for its involvement in a criminal organization, money laundering, financial misappropriation, and fraudulent management.
Crimes similar to the above case have been on the rise in the crypto industry. However, Brazilian authorities are working against the clock to ensure criminals and crooks in the industry are behind bars. It is only recently that one person was arrested for money laundering.