Brazilian law enforcement has launched a significant crackdown on cryptocurrency-related crime, executing two major operations targeting a multi-million dollar investment scam and a sophisticated digital heist.
Operation Mirage Freezes Wallets in $4 Million Fraud
On Wednesday, the Civil Police of Rio Grande do Sul initiated Operation Mirage, a nationwide effort to dismantle a large-scale investment fraud scheme. The operation resulted in five suspects being served with preventive arrest warrants, with raids conducted in the states of Goiás and São Paulo. Authorities froze 85 bank accounts, confiscated vehicles, and, notably, blocked cryptocurrency wallets linked to the scam.
Investigators, led by the Special Cyber Investigations Police Station, seized thousands of SIM cards, cell phones, computers, and luxury cars. According to investigator Isadora Galian, the fraudsters used sponsored social media ads to lure at least 40 victims, promising high returns on investments in Brazilian stocks. They operated closed networks to exchange counterfeit investment tips.
Victims sent over R$4 million (approximately $4 million) via Pix transactions to company accounts controlled by the criminals. The fraudsters claimed the funds were converted into crypto assets and displayed fake balances and profits on a fraudulent platform to attract further investment. When "losses" appeared, victims were blamed for operational errors. Galian cautioned investors to verify a company's registration with the CVM (Brazilian Securities Commission) and Central Bank before investing.
20-Year-Old Hacker Arrested for R$6 Million Bitcoin Heist
In a separate case, Brazilian police arrested a 20-year-old hacker, identified as Franca, for embezzling R$6,054,861.61 (over $6 million) from the payment system Cashway in July 2024. The hacker exploited dormant employee accounts with weak security, changed client bank passwords, and initiated fraudulent transfers.
Investigators tracked suspicious withdrawal patterns and Bitcoin transactions through Plebank, which led them to the suspect's mother's residence via an IP address. A search warrant uncovered 20 Pix keys registered in his name and incriminating evidence on electronic devices. Crucially, police found WhatsApp messages where the hacker had sent himself a cryptocurrency wallet seed phrase dated July 15, 2024.
The stolen funds were converted into Bitcoin, with some used to purchase iFood delivery credits. The hacker's habeas corpus petition was denied by the Superior Court of Justice, and he remains detained in Santa Catarina state pending trial. The case underscores that cryptocurrency transactions leave a digital trail, challenging claims of complete anonymity.
