TechFlow reported on September 13, according to Bitcoin.comNews, that the Brazilian Federal Police recently launched an operation codenamed "Niflheim," successfully dismantling a criminal network using cryptocurrencies to launder money. The network has laundered over $9.7 billion since 2021. During the operation, police executed eight arrest warrants and 19 search and seizure orders across cities including Caxias do Sul, São Paulo, Fortaleza, and Brasília. The Brazilian Federal Court simultaneously froze $1.58 billion worth of funds stored in bank accounts and cryptocurrency exchanges, and seized multiple vehicles and properties.
According to the investigation, the illicit funds primarily originated from illegal activities such as drug trafficking and smuggling. The criminal group concealed the source of funds through shell companies and other methods, subsequently transferring the cleaned funds to countries and regions including the United States, the United Arab Emirates, Hong Kong, and mainland China. The Brazilian Federal Police stated that the investigated criminal activities include money laundering, asset concealment, undermining the national financial system, false statements, criminal association, organized crime, and tax-related offenses. Although the investigation indicates these groups operated independently, they demonstrated high levels of coordination, leading police to suspect they may belong to the same organization, whose leaders are believed to reside in Caxias do Sul and Orlando.
