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Brazil police bust alleged cocaine cartel using crypto-linked money brokers

Prosecutors said investigators obtained court orders to freeze up to 1 billion reais, or about $197 million, in suspected proceeds.

Reported · Written up by our desk · Market Structure

Brazilian Federal Police said they arrested nine people and conducted raids across multiple states as part of an investigation into an alleged international drug cartel that used crypto-enabled illicit money brokers to move and conceal proceeds.

Authorities suspect the group trafficked around 6.5 metric tons of cocaine and laundered billions of Brazilian reais through a mix of shell companies, crypto-linked money brokerage, and investments including luxury assets and real estate.

Police said the operation involved executing 13 pretrial detention warrants and 44 search-and-seizure warrants in São Paulo, Minas Gerais, Santa Catarina, and Espírito Santo, and that courts authorized the freeze of up to 1 billion reais in assets.

The case comes after the US Treasury’s Office of Foreign Assets Control sanctioned six Ethereum addresses connected to a money laundering network tied to the Sinaloa Cartel, alleging proceeds were converted into cryptocurrency in May, according to Cointelegraph.

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