US Seizes $24M in Crypto as Part of Brazilian Probe of $200M Fraud Scheme
The U.S. Department of Justice (DOJ) announced Wednesday it has seized virtual currency worth an estimated $24 million on behalf of the Brazilian government.
- According to the DOJ, the seizure was made after a request from Brazil for help with a large cryptocurrency fraud scheme in a Brazilian federal police investigation called “Operation Egypto.”
- Brazilian authorities say more than $200 million was obtained through this scheme through which more than tens of thousands of Brazilians may have been defrauded, according to the DOJ.
- Brazilian federal prosecutors have charged several individuals in the case, the DOJ said.
- Several individuals, including local Marcos Antonios Fagundes, were charged as part of the scheme, which operated between August 2017 and May 2019., according to the DOJ statement
- Fagundes allegedly operated an unregistered financial institution to hold the cryptocurrencies he and his compatriots took from victims, and is charged with violating money laundering and securities laws violations.
- The cryptocurrencies appear to have been held in the U.S., the DOJ said.
