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In a landmark ruling, a Brazilian federal court has handed down a staggering 171 years in prison sentences to three masterminds behind one of the country's largest cryptocurrency Ponzi schemes. The court's decision, led by Judge Vinícius Costa Vidor, targets the leaders of Braiscompany, a now-defunct firm that swindled over 20,000 investors out of $190 million through fake cryptocurrency investments . Joel Ferreira de Souza, the alleged kingpin, has been sentenced to 128 years in prison and ordered to forfeit assets worth $6.
3 million. The court's crackdown on this massive scheme highlights the growing efforts to combat crypto-related crimes and protect investors in Brazil. Brazil's Largest Crypto Ponzi Leaders Sentenced to 171 Years #Brazil has sentenced three leaders of crypto Ponzi scheme #Braiscompany to a combined 171 years in prison.
Joel Ferreira de Souza, the mastermind, received 128 years; Gesana Rayane Silva, 27 years; and Victor...
pic.twitter.com/TNNFG4OJOj The other defendants sentenced include Gesana Rayane Silva, who received a 27-year sentence, and Victor Augusto Veronez de Souza, Joel’s son, who was sentenced to 15 years.
Both played roles in managing finances and attracting new investors. Scheme Collapsed in 2023 After Payment Failures Since its founding in 2018, Braiscompany has successfully gained customer loyalty by offering monthly returns of 8%. However, the company faced serious financial difficulties during the latter part of 2022.
In January 2023, Braiscompany stopped all payments to its investors. This incident sparked widespread public outrage and prompted the Federal Prosecutor's Office of Brazil to launch an investigation. According to the investigation, Braiscompany operated as a pyramid scheme while posing as a legitimate cryptocurrency investment platform.
Through aggressive marketing and unverified claims of partnerships, Braiscompany successfully attracted many investors. The company ultimately collapsed because it was unable to maintain its payments and lacked a sustainable business structure. Two individuals named in the case, Mizael Moreira Silva and Clelio Fernando Cabral do Ó, were acquitted due to a lack of sufficient evidence.
The authorities made it clear that the remaining convicted criminals had actively planned their financial fraud to generate profits through the deception of innocent investors. Founders Await Extradition as Brazil Moves to Recover Assets Braiscompany’s founders, Antônio Neto Ais and Fabrícia Campos , fled to Argentina in early 2024 as authorities closed in. Argentine authorities later arrested them, but legal delays have postponed their extradition.
Despite their physical absence, the Brazilian court sentenced Neto Ais to 88 years and Campos to 61 years in prison. The court mandates asset seizures however, legal experts doubt the likelihood of victims receiving recovery funds. Lawyer Artêmio Picanço states that civil claim filing should happen immediately since the state plans to manage asset distribution.
The rapid expansion of Brazil's cryptocurrency market exacerbates ongoing difficulties in managing legal controls. The case of Braiscompany highlights the lack of adequate investor protection and the unclear operations surrounding digital assets in the country..
