A Brazilian court has handled one of the country’s most significant crypto fraud cases and handed down one of its longest prison sentences. It sentenced three executives of a crypto Ponzi scheme in the country to a collective 171 years in prison.
The scheme, identified as Braiscompany, was charged with operating as an unauthorized financial firm in Brazil and laundering millions through unregulated crypto wallets and shell companies.
$190 Million Gone
The scheme’s alleged mastermind was Joel Ferreira de Souza, and Gesana Rayane Silva and Victor Veronez accompanied him. While Ferreira de Souza handled the scam company’s operations, Veronez, identified as Ferreira de Souza’s son, was at the forefront of the company’s illicit transactions. Meanwhile, Silva served as one of the firm’s brokers, assisting with cash transfers and mediation between customers and the firm.
To attract many investors into the scam project, Braiscompany promised massive returns via crypto trading. However, the company operated a pyramid scheme. Consequently, about 20,000 Brazilian citizens invested and lost over $190 million (R$1.11 billion).
171 Years Behind Bars
Braisecompany’s exploit was short-lived as authorities began investigating the pyramid scheme. Following prosecution and court hearings, the Federal Judge Vinicius Costa Vidor declared Ferreira de Souza guilty of 11 counts of money laundering. Thus, he was sentenced to 128 years, 5 months, and 28 days in prison.
Meanwhile, considering Gesana Rayane Silva and Victor Veronez’s limited roles in the exploit, the court sentenced them to 27 years and 15 years behind bars, respectively.
Additionally, the court ordered the confiscation of R$36 million, which will be transferred to the Brazilian Government. According to Artêmio Picanço, the standing lawyer for many Braisecompany victims, the victims must file civil claims before the funds are transferred to the state account to be eligible for a possible refund.
More Crypto Scams
According to recent reports, Nigeria, the world’s second most crypto-inclined country, was hit with a massive pyramid scheme, known as CBEX, that reaped off about $822 million from thousands of investors.
Mirroring Braisecompany’s tactic, CBEX promised its investors a return on investment (ROI) of over 100% in 40 days, attracting many in the quest for financial stability. It positioned itself as a crypto trading exchange that provided leverage trading signals for users.
Many investors who had gone to great lengths to be part of the CBEX project were disappointed when the firm showed its true colors on Monday, April 14, 2025. The project wiped out all users’ crypto balances, and its physical offices were closed.
