Civil police in São Paulo, Brazil, have taken significant action against a money laundering operation using cryptocurrencies, orchestrated by the infamous Primeiro Comando da Capital (PCC) drug gang.
According to CNN, the PCC gang operated a cryptocurrency exchange, facilitating money laundering activities amounting to over $88.6 million USD (approximately 500 million Brazilian reais).
The exchange was registered under the name of a 23-year-old woman, whose identity was not disclosed but is reportedly the daughter of a city council candidate for Mogi das Cruzes.
During the raid, authorities seized checks worth 55 million reais from the company’s headquarters.
The report further indicated that the laundered funds were intended to finance organized crime activities during the 2024 municipal elections.
So far, authorities have arrested 13 individuals connected to the scheme.
Cryptocurrencies have been a tool for criminals and gangs in Brazil for some time. Earlier this year, Brazilian federal police dismantled a $2.6 billion crypto-powered money laundering operation.
In June 2023, the Special Department of Federal Revenue of Brazil raided six local cryptocurrency exchanges suspected of laundering $380 million in illicit funds.
Later in the year, a UK-based individual came under investigation for using cryptocurrencies to launder drug money via the crypto exchange Binance. The funds were reportedly linked to Sérgio Roberto de Carvalho, an Interpol most-wanted criminal often dubbed the “Brazilian Pablo Escobar.”
A 2023 report highlighted that this trend extends beyond Brazil, affecting several criminal organizations across Latin America, including the notorious Sinaloa Cartel in Mexico and MS-13 in Central America.
Despite the rise in illicit activities involving cryptocurrencies, Brazil has seen a 30% increase in crypto trading volume in 2024. Moreover, the country’s central bank is expected to introduce digital asset regulations this year.
Brazil’s largest bank, Itaú Unibanco, began allowing Bitcoin and Ethereum trading on its mobile app on June 12. In March, asset manager BlackRock launched its spot Bitcoin ETF product in the nation.
