Leaders of $190 Million Crypto Ponzi Scheme, Braiscompany, Receive Sentences Totaling More Than 170 Years
A Brazilian court has sentenced three executives behind the collapsed crypto scheme Braiscompany to a combined 171 years in prison, marking a significant resolution in one of the country’s largest crypto fraud cases. Federal Judge Vinicius Costa Vidor found Joel Ferreira de Souza, the scheme’s alleged mastermind, guilty of operating an unlicensed financial institution and laundering millions through shell companies and unregulated crypto wallets, according to local media reports. De Souza received the most extended sentence of 128 years. Two others, Gesana Rayane Silva and Victor Veronez, were sentenced to 27 and 15 years, respectively, for their roles in managing cash and acting as intermediaries in the scheme.
The ruling follows accusations from Brazil’s Federal Prosecutor’s Office (MPF) against five individuals for orchestrating a pyramid structure that raised R$1.11 billion ($190 million) from around 20,000 investors. Braiscompany had promised high returns through crypto trading but allegedly operated a parallel financial system relying on informal transfers and high-commission ventures.
The court also mandated the seizure of R$36 million, although it remains uncertain how much those affected will recover. Artêmio Picanço, a lawyer representing several victims, emphasized that those impacted should file civil claims promptly to avoid funds being absorbed by the state. Two defendants were acquitted due to insufficient evidence, while the rest were found to have “acted to disguise the illicit origin” of the funds, conducting operations that emulated legitimate investment practices yet served to benefit insiders.
