Civil police in São Paulo, Brazil, have dismantled a cryptocurrency-based money laundering operation linked to the Primeiro Comando da Capital (PCC), a notorious drug gang. The group reportedly laundered over $88.6 million USD through a cryptocurrency exchange registered under the name of a 23-year-old woman, daughter of a city council candidate in Mogi das Cruzes. Authorities seized 55 million reais worth of checks during the raid and arrested 13 individuals involved in the scheme.
The operation’s proceeds were allegedly intended to finance organized crime during Brazil’s 2024 municipal elections. The PCC gang’s use of cryptocurrencies has been a growing trend in the country, where digital assets are increasingly being used to launder illicit funds. Earlier this year, Brazilian federal police uncovered another crypto-powered laundering scheme worth $2.6 billion.
Cryptocurrencies have become a favored tool for criminals in Brazil, with six local cryptocurrency exchanges being raided in June 2023 for laundering $380 million in illegal funds. Criminal organizations across Latin America, including the Sinaloa Cartel and MS-13, have also turned to digital currencies to facilitate their illegal activities, making it a widespread issue in the region.
Despite the rise of illicit activities, cryptocurrency adoption in Brazil has continued to surge. Trading volumes increased by 30% in 2024, while the country’s central bank is expected to introduce regulations for digital assets. Major financial institutions like Itaú Unibanco and BlackRock have embraced the trend, with the former offering Bitcoin and Ethereum trading, and the latter launching a Bitcoin ETF in Brazil.
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