Home News Brazil aims to tighten penalties for crypto-related financial crimes

Brazil aims to tighten penalties for crypto-related financial crimes

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A special committee of the Chamber of Deputies of Brazil proposed to increase fines for money laundering using cryptocurrencies from 1/3 to 2/3 of the amount, and a prison term of up to 4-16 years and eight months.

Thus, the amendments propose to tighten responsibility for offenses provided for in the law that regulates cryptocurrency trading and payments using digital assets. The Chamber of Deputies will consider the document during the plenary session.

One of the authors of the bill, Aureo Ribeiro, intends to fight financial pyramid schemes with cryptocurrency. Moreover, according to his estimates, over 300,000 people have become victims of such fraud. “There will be no more speculators using technology to deceive millions of Brazilians,” the deputy said. In an interview with Cointelegraph Brazil, Ribeiro expressed confidence that the adoption of the bill will open the way for the legalization of Bitcoin in the country.

The Federal Police arrested $28.7M in cryptocurrencies

Recall that in August, Brazilian police arrested $28.7 million in cryptocurrencies. The Federal Police seized a cryptocurrency worth 150 million Brazilian reals during the Kryptos operation related to an alleged financial pyramid scheme.

Law enforcement officers arrested five people. In addition to digital assets, the police had $3.6 million in cash. They also had 21 premium cars and various decorations at their disposal.

According to investigators, the organizer of the criminal scheme was one of the detainees Glaidson Acacio. The owner of a consulting business in the field of digital assets in Rio de Janeiro offered clients a yield of up to 15% per annum. He is accused of withdrawing “billions” of client funds.

Bitcoin Banco Group

Previously in July, law enforcement officers liquidated Bitcoin Banco Group, the damage from which actions for 7000 citizens exceeded $300 million. Its leader Claudio Oliveira, known as the “King of Bitcoin”, was arrested. The investigation lasted three years. According to its results, the authorities collected enough evidence to arrest the property. Consequently, they detained the initiator of the criminal scheme.

During the bull market of 2017, Bitcoin Banco Group promised customers “incredible profits”. At the end of 2019, the firm reported the disappearance of 7000 BTC and filed an application for judicial recovery. This document assumes an agreement agreed with the authorities on the reorganization of activities to avoid bankruptcy.

In the future, Bitcoin Banco Group presented an updated version of the platform. The company was unable to provide wallet data that could clarify the situation. Later, it turned out that the organization’s employees were systematically transferring client funds to Oliveira’s personal accounts.

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