Brazilian Crypto Ponzi Scheme Operator Sentenced to Over 128 Years in Prison, Ending Massive Fraud Scandal
The Brazilian justice system has handed down a harsh sentence to Joel Ferreira de Souza, identified as the mastermind behind Braiscompany – one of the largest cryptocurrency Ponzi schemes in the history of the South American country. Souza’s total sentence of 128 years, 5 months and 28 days in prison marks the end of a case that shocked Brazil’s cryptocurrency investment community.
According to court documents and local sources, Braiscompany defrauded over $100 million from nearly 20,000 investors nationwide. The company advertised itself as a cryptocurrency investment platform promising high returns, but in reality it operated as a Ponzi scheme, using new investors’ money to pay out profits to previous investors.
In addition to Souza, two other individuals were also sentenced to heavy sentences. Gesana Rayane Silva, who was considered a broker and cash transporter in the system, was sentenced to 27 years, 10 months and 10 days in prison. Meanwhile, Victor Augusto Veronez de Souza – Joel’s son and the person in charge of the financial intermediary – was also sentenced to 15 years in prison for his role in illegal transactions related to the scheme.
The justice system has confirmed that this is one of the largest and most sophisticated cryptocurrency scams ever committed in Brazil. The defendants were convicted of a number of crimes, including money laundering, fraud and running a financial criminal organization.
Two other individuals involved were initially acquitted, due to a lack of evidence of wrongdoing. However, the investigation has shed light on Braiscompany’s sophisticated network of concealing money flows, using shell companies and offshore accounts.
Last year, Antonio Inacio Da Silva Neto, the real owner of Braiscompany, and his partner Fabricia Farias Campos were arrested in Argentina after a long period of hiding. Both were extradited to Brazil and sentenced to a total of nearly 150 years in prison, including 88 years and 7 months for Da Silva Neto and 61 years and 11 months for Farias Campos.
This case once again raises the alarm about the potential risks in the unregulated cryptocurrency investment market. Brazilian authorities have urged people to be vigilant and not to easily believe the promises of "huge profits" from organizations without proper supervision and licensing.