Brazil’s Federal Police and the U.S. Homeland Security Investigations (HSI), along with the help of multiple other enforcement agencies have busted a global crypto fraud ring, according to a press release issued by the U.S. Immigration and Customs Enforcement (ICE) on Oct. 6.
The Curitiba, Brazil-based crypto fraud ring took the form of a digital asset investment platform and was led by Franciso Valdevino da Silva also known as the “Bitcoin Sheikh,” according to local media reports.
Da Silva and his company allegedly committed crimes of international money laundering, operating a criminal enterprise, fraud, and crimes against the domestic financial system.
The ring carried defrauded investors across a dozen countries by claiming to have developed fully-fledged crypto-related financial products and by promoting fraudulent partnership advertisements and licenses. The victims invested millions into the cryptocurrencies with little to no value that were created by the ring.
Following the transnational criminal firm’s commander’s relocation to Brazil in January 2022, HSI special agents stationed at the American Embassy in Brasilia, Brazil, requested help from the Brazilian Federal Police to manage multilateral investigative activities.
“Operation Poyais”
Brazilian law enforcement carried out an investigation called “Operation Poyais,” in which they conducted 20 searches and raids across nation states, including Santa Catarina, São Paulo, and Rio de Janeiro. They…