Brazil Cracks Down on Crypto-Linked Cocaine Trafficking Cartel

Brazilian authorities have busted an international drug cartel suspected of shipping over 6.5 metric tons of cocaine and laundering billions in Brazilian reals through illicit money brokers that use cryptocurrencies.

The operation, which took place last week, involved the arrest of nine people and the execution of 13 pretrial detention warrants and 44 search-and-seizure warrants across four states: São Paulo, Minas Gerais, Santa Catarina, and Espírito Santo. The police also obtained court orders to freeze up to 1 billion reais ($197 million) in assets during the investigation.

The organization is suspected of using various methods to conceal its illicit proceeds, including shell companies, crypto-enabled money brokers, luxury assets, and real estate. Charges against the suspects include participation in a transnational criminal organization, international drug trafficking, and money laundering.