Cryptocurrency’s growing role as a tool for money launderers has once again been highlighted in Brazil, where authorities recently dismantled a major scheme involving the country’s most notorious criminal organization, the First Capital Command (Primeiro Comando da Capital – PCC). FinTelegram has previously reported on the increasing use of cryptocurrencies by criminals, and this latest case underscores the urgency of addressing this evolving threat.
According to a report by Insight Crime, police in São Paulo have frozen over $1.4 billion in bank accounts linked to an anti-money laundering operation targeting the PCC. The investigation, which began with the arrest of Fabiana Manzini in October 2023, led to the launch of Operation Decurio on August 6, 2024. Manzini, connected to PCC leadership through her husband, Anderson Manzini, was suspected of facilitating communication between gang members inside and outside prison.
Operation Decurio resulted in the arrest of 13 suspects and the seizure of significant assets, including luxury watches and cash. However, the most significant blow to the PCC came with the freezing of billions in criminal proceeds held in bank accounts. Authorities uncovered that the PCC had been using a company posing as a cryptocurrency broker and virtual bank to launder profits from drug trafficking, with transactions totaling nearly $90 million.
The criminal group attempted to establish a banking structure unauthorized by the Central Bank of Brazil, operating as if it were a legitimate financial institution. Had this effort succeeded, the PCC would have been able to bypass the mandatory reporting of suspicious transactions, severely hampering oversight.
This case marks the third major crypto-based money laundering operation dismantled by Brazilian authorities in 2024 alone. Previous operations revealed similar schemes, including one involving Ronald Roland, who allegedly moved over $1 billion in criminal proceeds through cryptocurrency investments.
The PCC’s reliance on cryptocurrency reflects a broader trend in Brazil, where criminals are increasingly turning to digital assets to conceal their illicit earnings. In 2024, the Federal Police have already investigated eight cases of crypto-based money laundering, nearly matching the total number from the record year of 2021.
As Brazil grapples with the rapid growth of its cryptocurrency market—now the sixth-largest in the world in terms of ownership—the country’s regulatory framework struggles to keep pace. The Central Bank of Brazil is expected to introduce new regulations later this year aimed at tightening controls on the crypto market and curbing its misuse for money laundering.
