The Brazilian Federal Police have successfully dismantled a significant crypto money laundering operation, seizing approximately R$2.7 billion, equivalent to $500 million, that has been in operation for five years. This enforcement action was part of “Operation Kryptolaundry,” initiated on December 9, aimed at targeting fraudulent investment schemes and illicit financial activities involving cryptocurrencies.
Reports indicate that this criminal network is associated with Glaidson Acácio dos Santos, infamously known as the Bitcoin Pharaoh, who was arrested by Brazilian authorities in 2021. Santos was the mastermind behind Gas Consultoria, a notorious investment pyramid scheme that resulted in substantial financial losses for thousands of Brazilians.
Following the tactics used by Santos, the launderers reportedly funneled millions of dollars through a combination of shell companies and cryptocurrencies. They drew in victims by marketing enticing crypto investment opportunities, utilizing aggressive social media campaigns, and hosting meetups to build rapport and trust with potential investors.
It was revealed that the criminal group generated around R$2.7 billion through these operations, with R$404 million, or $75.5 million, classified as illicit funds. A significant portion of these funds was hidden and transferred to the ring”s leaders through cryptocurrency transactions and numerous shell companies. Brazilian courts have since ordered the freezing of bank accounts holding approximately R$685 million, or $128 million, and have authorized the seizure of farms, commercial properties, and luxury real estate associated with the operation.
Law enforcement executed nine preventive arrest warrants targeting a total of 45 individuals and entities involved in this operation. Reports indicate that six arrests were made in the Federal District, with two additional suspects apprehended in Spain. Those detained will face charges related to financial crimes, money laundering, organized crime, and document forgery.
Glaidson Acácio dos Santos, the central figure in this saga, was sentenced to over 19 years in prison for his role in criminal activities and corruption. His associate, Daniel Aleixo Guimarães, received a sentence of more than 16 years. This crackdown follows another successful operation in July 2025, where authorities dismantled a complex crypto cybercrime network that laundered over R$164 million, or $32 million, leading to the arrest of 32 individuals and the seizure of R$112 million.
According to TRM Labs, the previous cybercrime group engaged in acquiring fake documents and fraudulent credit cards through dark web marketplaces, which they used to steal funds and launder them via cryptocurrencies. The laundered proceeds were then reintegrated into the economy through purchases of properties and vehicles.
This recent operation highlights the ongoing efforts by Brazilian authorities to combat cryptocurrency-related crimes, showcasing their collaboration with organizations like Binance”s investigation team to enhance on-chain analysis and investigations.
