Brazilian Court Sentences Three to 170 Years for $190 Million Crypto Ponzi Scheme
A Brazilian court has sentenced three individuals to a combined 170 years in prison for orchestrating a cryptocurrency-based Ponzi scheme that defrauded investors of approximately $190 million. The convicted men — Joel Ferreira de Souza, Gesana Rayane da Silva, and Victor Augusto Veronez de Souza — were found guilty of masterminding the Braiscompany scandal, which affected at least 20,000 victims.
Prosecutors revealed that the trio promised unrealistic returns on Bitcoin investments, luring unsuspecting individuals into what turned out to be a pyramid scheme. Victims were often recruited through social media and personal relationships, with the platform falsely operating under a guise of legitimacy.
Authorities identified Ferreira de Souza as the principal operator behind Braiscompany. The scheme targeted individuals new to cryptocurrency, many of whom invested substantial amounts in digital assets, believing they were part of a legitimate, high-yield venture.
In addition to the lengthy prison terms, the court has ordered the defendants to repay roughly $6.2 million to investors, while law enforcement continues efforts to recover additional funds.
**Braiscompany's Controversial Past**
This isn’t Braiscompany’s first brush with controversy. In 2021, the company sued financial research firm Suno Research for slander after it accused Braiscompany of operating a pyramid scheme. While Braiscompany initially succeeded in having Suno's critical content taken down, the tables turned when the court later requested the company provide evidence disproving the pyramid scheme allegations.
**Growing Calls for Investor Protection**
The case has reignited calls for increased vigilance in the crypto space. As Brazilian banks and financial institutions begin offering crypto-related investment products, the need for tighter regulations and stronger investor protections has become more pressing amid the market’s rapid growth.
