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The United States Department of Justice (DOJ) claims it seized $ 24 million worth of cryptocurrencies after receiving an official request from the government of Brazil. The seizure stems from an ongoing investigation into the $ 200 million cryptocurrency scam that may have defrauded tens of thousands of Brazilians. Brazilian authorities say the scammers deceived people by typically promising exaggerated returns and falsifying where the funds were invested.
Criminal violations
In a statement, the DOJ states that the United States has adhered to Brazil’s request in line with the cooperation treaty signed between the two countries regarding “mutual legal assistance in criminal matters”.
Meanwhile, according to the DOJ statement, “the US kidnappings were linked to the alleged role of Brazilian Marcos Antonio Fagundes in the scheme”. Fagundes and several unnamed accomplices have been “charged with several criminal violations of Brazilian law, including, among other crimes, operating a financial institution without legal authorization.”
The statement adds that the defendant also faces charges of “fraudulent management of a financial institution, embezzlement and money laundering, as well as violations of securities law.”
The Department of Justice statement provides a brief summary of the findings of a Brazilian court against Fagundes and his accomplices. The statement says:
From August 2017 to May 2019, Fagundes and other defendants solicited funds from potential investors over the internet, sometimes in combination with telephone and other means, and held the funds received in such a way as to subject them to regulation as a financial institution under the law. Brazilian, which Fagundes and the other defendants did not comply.
The statement reveals that “the defendants urged investors to give money to the companies they controlled, in the form of Brazilian currency or cryptocurrency, which the companies would then invest in a variety of types of virtual currency.”
False claims
However, as the Brazilian court found, “only a small amount of funds were invested in cryptocurrencies as promised, and very little was returned to investors.”
Meanwhile, the DOJ says US authorities are now working closely with Brazilian authorities and others to “withhold the virtual currency and hold it for ongoing confiscation proceedings in Brazil to compensate investors who are victims of this fraudulent investment scheme. “.
The statement concludes that “the cryptocurrency company that holds the accounts cooperated with law enforcement authorities in the execution of this seizure.” However, the statement does not provide the name of the cooperating crypto company.
What do you think of this collaboration between the two countries? Share your thoughts in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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