Brazilian crypto scammers just got slapped with a jaw-dropping 170-year combined prison sentence. The ringleader, Joel Ferreira de Souza, earned himself a record 128 years behind bars for masterminding the massive Braiscompany Ponzi scheme. Along with two accomplices, they swindled 20,000 investors out of $190 million with bogus promises of 20% monthly returns. The historic ruling sends a crystal-clear message to would-be crypto criminals lurking in Brazil’s digital shadows.
In a landmark ruling that sent shockwaves through Brazil’s crypto community, three masterminds behind the country’s largest cryptocurrency Ponzi scheme have been slapped with a staggering 170-plus years in prison.
Joel Ferreira de Souza, the scheme’s architect, earned himself a whopping 128 years behind bars – the longest sentence ever handed down for crypto crime in Brazil. The scheme’s collapse led to extensive financial losses for thousands of victims.
A record-breaking 128-year prison sentence proves Brazil isn’t playing around when it comes to crypto scammers anymore.
The scam, known as Braiscompany, wasn’t exactly subtle. It promised investors a laughable 20% monthly return on their crypto investments. Spoiler alert: Those returns were about as real as a three-dollar bill.
Around 20,000 investors got burned, losing approximately $190 million in what turned out to be nothing more than an elaborate house of cards. Market manipulation remains a persistent threat in the largely unregulated crypto space.
De Souza didn’t work alone. His partners in crime included Gesana Rayane Silva, who got 27 years for her role as marketing director (turns out false advertising has consequences), and Victor Augusto Veronez, who nabbed 15 years for cooking the books as technical director. The criminals operated an unlicensed financial institution while maintaining a facade of legitimacy.
Two other defendants walked free due to lack of evidence – lucky them.
The operation was a masterclass in deception. Shell companies, unregulated crypto wallets, and informal financial networks helped mask the illegal activity.
The fraudsters even managed to make their pyramid scheme look like a legitimate investment firm. That is, until it all came crashing down.
The Federal Court didn’t just hand out prison sentences – they also ordered the confiscation of 36 million reais (about $6 million).
But here’s the kicker: victims might never see most of their money again. Their legal representative, Artêmio Picanço, is urging them to file civil claims before the cash becomes state property.
The verdict marks a turning point in Brazil’s battle against crypto fraud. Judge Vinicius Costa Vidor made it crystal clear: running unauthorized financial schemes and promising impossible returns won’t be tolerated.
In the wild west of cryptocurrency, it seems the sheriff has finally arrived – and he’s not messing around.
