Braiscompany founders sentenced after defrauding 20,000 investors in one of Brazil’s largest-ever crypto scams.
A Brazilian federal court has sentenced three top executives of Braiscompany, a fraudulent crypto investment platform, to a combined 171 years in prison. The scheme, which misled nearly 20,000 investors, raised over $190 million (R$1.11 billion) by promising unrealistically high returns through crypto trading.
Joel Ferreira de Souza, identified as the mastermind, received a staggering 128-year sentence. His associates, Gesana Rayane Silva and Victor Veronez, were sentenced to 27 and 15 years respectively for their roles in managing cash flows and acting as intermediaries.
Ponzi Structure Disguised as Crypto Investment
According to Brazil’s Federal Prosecutor’s Office (MPF), Braiscompany operated a classic pyramid scheme, falsely claiming to generate profits through crypto trading while actually recycling new investors’ money to pay off earlier participants. Behind the scenes, the company ran a parallel financial system using informal transfers and high-commission operations.
Federal Judge Vinicius Costa Vidor noted that the firm mimicked legitimate financial activity to conceal the illicit nature of its operations, including the use of unregulated crypto wallets and shell companies.
Victims Advised to Act Swiftly
As part of the ruling, the court ordered the seizure of R$36 million in assets. However, it remains unclear how much of this will be returned to defrauded investors. Artêmio Picanço, a lawyer representing multiple victims, urged them to file civil claims promptly before the funds are absorbed by the state.
Two other defendants were acquitted due to lack of evidence, while the rest were found guilty of laundering money and disguising its illegal origins.
One of Brazil’s Biggest Crypto Frauds
The Braiscompany case is among the largest crypto frauds in Brazil’s history and highlights the risks of unregulated digital asset schemes. It underscores the need for stricter oversight and investor education in the country’s rapidly growing crypto sector.
Authorities continue to warn the public against offers promising outsized returns, especially in the crypto space, where regulatory safeguards are still evolving.
