Crypto Scam: Brazilian Judge Issues 128-Year Sentence To $190-M Ponzi Mastermind

A federal court in Brazil has handed down a 128-year prison sentence to a major leader of a crypto Ponzi scheme syndicate that defrauded investors of over a hundred million dollars. Two other individuals also received lengthy prison sentences, while others were acquitted as the court cited insufficient evidence.

Crypto Ponzi Trio Gets Combined 170 Prison Sentence 

In February 2023, the Brazilian Federal Public Prosecutor’s Office commenced an investigation of Braiscompany, a firm that promised an 8% monthly return on alleged crypto investments. 

Multiple reports state that Braiscompany commenced operations in June 2018, but began experiencing issues with investor payouts in December 2022. By January 2023, payments stopped completely, prompting an outcry from investors. Notably, investigations showed that Braiscompany has operated as a pyramid scheme disguised as an investment company, defrauding over 20,000 investors of R1.11 billion ($190 million) 

According to local media Portal do Bitcoin, the 4th Federal Court of Campina Grande under Judge Vinícius Costa Vidor has issued a 128-year sentence to Joel Ferreira de Souza, who is tagged as the financial mastermind of the crypto Ponzi scheme. In addition, the court also ordered confiscation of assets belonging to Souza valued at R36.59 million ($6.3 million). 

Alongside Souza, his son Victor Augusto Veronez de Souza was handed a 15-year prison sentence for his involvement in running the pyramid scheme. Gesana Rayane Silva, who has been described as a key member of Braiscompany’s fraudulent structure, has been ordered to serve a 27-year sentence. 

It is worth noting that all three convicts are also paying a fine of varying amounts, alongside a joint amount to compensate the victim investors. Meanwhile, Mizael Moreira Silva and Clelio Fernando Cabral do Ó, who were among the defendants, were acquitted and discharged by the court, citing a lack of evidence in the prosecutors’ case.

Braiscompany Owners Await Extradition 

Interestingly, Antônio Neto Ais and Fabrícia Campos, a married couple and founders of Braiscompany, remain in Argentina awaiting extradition. Notably, the duo fled from Brazil in February 2024 when authorities commenced into Braiscompany.

After being declared fugitives by the Brazilian government, Neto Ais and Campos were arrested by Argentine authorities but have been freed from detention for different legal reasons. Nonetheless, both individuals still face extradition to Brazil, where Judge Costa Vidor has already sentenced Neto Ais to 88 years in prison and Campos to 61 years.

In other news, the crypto market is currently valued at $2.64 trillion following a 0.67% gain in the past day.