A Brazilian federal court handed down heavy prison sentences to the masterminds behind Braiscompany, a massive crypto Ponzi scheme that defrauded more than 20,000 investors out of approximately $190 million. The case stands as one of Brazil’s largest convictions related to cryptocurrency fraud.
The Sentences: Long Prison Terms for Key Figures
The court sentenced Joel Ferreira de Souza, the scheme’s main operator, to 128 years, 5 months, and 28 days in prison for money laundering and orchestrating the fraud. He managed the illegal financial operations through shell companies and unregulated crypto wallets.
Other key members received lengthy sentences as well:
| Name | Role |
Sentence Length |
|
Joel Ferreira de Souza |
Mastermind, financial operator | 128 years, 5 months, 28 days |
|
Gesana Rayane Silva |
Broker, key member | 27 years |
|
Victor Augusto Veronez de Souza |
Joel’s son, intermediary |
15 years |
| Antônio Neto Ais | Founder (fled to Argentina) |
88 years (sentenced in absentia) |
| Fabrícia Farias Campos | Co-founder (fled to Argentina) |
61 years (sentenced in absentia) |
Two other defendants were acquitted due to lack of evidence.
How the Scheme Worked
Braiscompany operated from June 2018 until early 2023. It promised investors an 8% monthly return by investing in cryptocurrencies. In reality, it was a pyramid scheme that paid old investors with money from new ones.
When payouts stopped in December 2022, the scheme collapsed. Brazil’s Federal Public Prosecutor’s Office launched an investigation, revealing a complex web of money laundering and illegal financial transactions.
The court found that Braiscompany ran a parallel financial system with informal transactions and high commissions to hide the fraud.
Asset Seizure and Victim Compensation
Authorities seized about R$36 million (around $6.3 million) in assets from the convicted defendants. Victims are encouraged to file civil claims quickly to recover as much of their lost funds as possible before the assets are absorbed by the state.
Why This Case Matters
- The 128-year sentence for Joel Ferreira de Souza is among the longest for financial crimes in Brazil.
- The ruling sends a strong message against crypto fraud and highlights the risks in unregulated crypto markets.
- It shows Brazil’s increasing commitment to protecting investors from scams.
Key Takeaways
- Braiscompany defrauded 20,000 investors of $190 million.
- Main operator Joel Ferreira de Souza got 128 years in prison.
- Other key members received sentences ranging from 15 to 88 years.
- Founders fled to Argentina but were sentenced in absentia.
- Authorities seized R$36 million in assets for victim compensation.
- Victims must act fast to file claims and recover losses.
- The case signals Brazil’s tough stance on crypto fraud.
FAQs
Q: What was Braiscompany?
- A: A crypto Ponzi scheme promising high returns but defrauding investors of nearly $190 million.
Q: Who got the longest sentence?
- A: Joel Ferreira de Souza, 128 years for money laundering and running the scheme.
Q: Are the founders in custody?
- A: Founders fled to Argentina and await extradition.
Q: Will victims get their money back?
- A: Authorities seized R$36 million in assets, but victims must file claims quickly.
Q: How many investors were affected?
- A: About 20,000 investors lost money.
This case highlights the dangers of unregulated crypto investments and Brazil’s growing efforts to fight financial crime in the digital age. It’s a reminder to stay cautious and informed when investing in cryptocurrencies.
