- Brazilian courts have sentenced executives of the crypto Ponzi scheme Braiscompany to a combined 171 years
- The scheme has defrauded approximately 20,000 investors, accumulating around $190 million
- Authorities have ordered the seizure of assets worth R$36 million, though victim restitution remains uncertain
In a landmark ruling, Brazilian courts have handed down a total of 171 years in prison to three key figures behind Braiscompany, a fraudulent cryptocurrency investment firm. The company lured around 20,000 investors with promises of high returns, ultimately defrauding them of approximately $190 million. While authorities have seized assets worth R$36 million, it’s unclear how much will be returned to the victims.
Investors Promised 15% Interest
Braiscompany operated under the guise of a legitimate crypto investment firm, offering monthly returns between 8% and 15% to entice investors. However, investigations revealed it functioned as a pyramid scheme, using funds from new investors to pay earlier ones. The operation began facing issues in December 2022, ceasing all payments by January 2023, which led to widespread investor complaints and subsequent investigations.
Joel Ferreira de Souza, identified as the scheme’s mastermind, received a sentence of 128 years, 5 months, and 28 days. His son, Victor Augusto Veronez de Souza, was sentenced to 15 years, while Gesana Rayane Silva, a key associate, received 27 years, 10 months, and 10 days. The court found them guilty of operating an unlicensed financial institution and laundering millions through shell companies and unregulated crypto wallets.
Victims Likely to be Left Out of Pocket
The Federal Court’s decision also included the seizure of R$36 million in assets linked to the scheme. However, the distribution of these funds remains contentious. Artêmio Picanço, a lawyer representing several victims, emphasized the urgency for affected individuals to file civil claims promptly to reclaim their investments before the state absorbs the funds.
This case highlights the importance of investor education in helping people recognize and avoid fraudulent schemes, which security firms warn are on the increase.
