Brazilian police freeze approximately $196 million in assets related to a cryptocurrency money laundering and drug trafficking gang

The Brazilian Federal Police are cracking down on a drug trafficking gang that has been laundering money through cryptocurrency in Operation Commodity. Since 2021, the gang has smuggled over 6.5 tons of cocaine to Europe via the Port of Rio de Janeiro, with the drugs hidden in shipments of coffee, cement, and mortar.

The operation covered São Paulo, Minas Gerais, Santa Catarina, and Espírito Santo, with police executing 13 preventive arrests and 44 search and seizure warrants. The court ordered the seizure of assets and the freezing of up to 1 billion reais, approximately 196 million dollars. Police stated that the gang is linked to Primeiro Comando da Capital (PCC) and Comando Vermelho (CV), and laundered money through a luxury car dealership and shell companies in the Greater São Paulo area, with the dealership selling vehicles such as Ferrari, Porsche, Corvette, and Land Rover.

The individuals involved used shell companies to issue invoices lacking supporting documents, bringing drug trafficking proceeds into the Brazilian financial system and using cryptocurrency to conceal transactions. The suspects will be held accountable for charges including transnational organized crime, international drug trafficking, and money laundering.