Operation Fantasos: Brazil Strikes Remnants of $290 Million Crypto Ponzi Scheme, Collaborates with FBI and HSI

On April 30, the Brazilian Federal Police launched Operation Fantasos – a large-scale law enforcement operation targeting the remnants of Trade Coin Club, the infamous $290 million cryptocurrency Ponzi scheme. The operation took place across multiple locations in the state of Rio de Janeiro, with more than 50 officers executing 11 search and seizure warrants in the cities of Petrópolis and Angra dos Reis.

The operation comes just months after Douver Torres Braga – the alleged mastermind of Trade Coin Club – was extradited from Switzerland to the United States and is now facing fraud and conspiracy charges that carry a sentence of up to 20 years in prison.

According to a press release from the authorities, Operation Fantasos aimed to achieve two main objectives: to destroy ongoing money laundering activities through cryptocurrency assets, and to collect additional evidence to strengthen the prosecution case against Braga in the United States.

During the course of the operation, police seized a series of valuable luxury assets including yachts, luxury cars, high-end watches, jewelry, cash, cryptocurrency, computers and phones. The total value of the seized assets is estimated at more than $280 million. The operations were carried out under the orders of the Brazilian federal court.

The operation received significant support from US investigative agencies, including the FBI (Federal Bureau of Investigation), HSI (Homeland Security Investigations), and IRS-CI (Criminal Investigation of the US Internal Revenue Service), reflecting the international scope and seriousness of the case.

Operation Fantasos is a testament to the Brazilian authorities’ continued efforts to crack down on fraudulent schemes involving cryptocurrencies, which have become a hotbed for financial crime in the country.

In October, Brazil launched operations Alcacaria and Privilege, which resulted in over 60 search warrants, 13 arrests, and the dismantling of several unidentified cryptocurrency exchanges accused of money laundering.

Last September, Operation Niflheim was also launched to dismantle a cryptocurrency money laundering network that has laundered over $9.7 billion since 2021.

Through Fantasos, Brazil continues to send a strong message of increased monitoring and enforcement of illicit cryptocurrency activities, in close coordination with international partners, to protect financial markets and citizens from increasingly sophisticated forms of fraud.