With information from the Ministry of Finance and the Prizes and Betting Secretariat (SPA), the Police executed nine search warrants in São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, targeting 87 companies suspected of facilitating money laundering in betting operations.
Key Takeaways
Brazil raided 87 shell companies in Operation Veil of Maya, disrupting an illegal crypto laundering ring.The ring transferred gambling funds abroad via crypto, evading taxes in a massive underground market.The enforcement action backs Brazil’s broader regulatory bans on illegal casinos and prediction markets.Brazil is increasing its oversight over illegal operations involving cryptocurrnecy in its financial system.
On Monday, the Brazilian Federal Police executed Operation “Veil of Maya,” cracking down on an illegal betting ring that used shell companies to launder and redirect funds to these activities using fiat and digital currency.
The operation was codenamed “Veil of Maya” as it represents a facade that impedes the appreciation of reality, meaning that these shell companies presented objectives that hid their true purposes.
Nine search-and-seizure orders were executed in several locations, including São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, seeking the alleged owners of these shell companies.
“Those under investigation may face charges of money laundering, tax evasion, organized crime, and other offenses that may be identified during the course of the investigation,” the Federal Police revealed.
Illegal betting has become a major problem for the Brazilian government, aided by the use of digital currency, making it difficult for law enforcement to track these transactions.
