A Brazilian cryptocurrency Ponzi scheme, Braiscompany, has resulted in lengthy prison sentences for its masterminds. The scheme defrauded investors out of a staggering $190 million.
The Sentences
The ringleader, Joel Ferreira de Souza, received a 128-year sentence. Two accomplices, Gesana Rayane Silva and Victor Augusto Veronez de Souza, were sentenced to 28 and 15 years, respectively. That’s a combined sentence of over 170 years!
How the Scheme Worked
Authorities say the trio lured investors with promises of incredibly high returns on their cryptocurrency investments. They then engaged in money laundering to hide their ill-gotten gains. Ferreira de Souza used shell companies and third parties to manage cryptocurrency portfolios, making it difficult to trace the money. Silva acted as a broker, handling transactions and moving funds. His son, Victor, was also involved in the fraudulent activities.
The Aftermath
The judge ruled that the money seized from the scheme should go to the government. However, a lawyer representing the victims is pushing for the funds to be returned directly to those who lost money.
