Leaders of $190 Million Brazilian Crypto Pyramid Sentenced to Over 170 Years in Prison
An alleged cryptocurrency Ponzi scheme lured nearly 20,000 investors with false promises, raising more than $190 million.
Author: Francisco Rodriguez | Edited by: Parikshit Mishra Updated: Apr 18, 2025 2:38 PM Published: Apr 18, 2025 12:52 PM
Key facts:
- A Brazilian court has sentenced three leaders of bankrupt crypto company Braiscompany to a combined 171 years in prison.
- The main organizer, Joel Ferreira de Souza, received 128 years in prison, while his accomplices, Gesana Ryan Silva and Victor Verones, were sentenced to 27 and 15 years respectively.
- Braiscompany has raised approximately $190 million from 20,000 investors.
A Brazilian court has sentenced three executives of collapsed cryptocurrency company Braiscompany to 171 years in prison, ending one of the country's largest cryptocurrency fraud cases.
Federal Judge Vinicius Costa Vidor found the alleged mastermind of the scheme, Joel Ferreira de Souza, guilty of running an unlicensed financial institution and laundering millions through shell companies and unregulated cryptocurrency wallets, local media reported.
De Souza received the heaviest sentence of 128 years in prison. The other two, Gesana Ryan Silva and Victor Verones, received 27 and 15 years, respectively, for their roles in managing the finances and acting as a middleman in the scheme.
The decision came after Brazil's Federal Prosecutor's Office (MPF) charged five people with running a Ponzi scheme that attracted R$1.11 billion (US$190 million) from around 20,000 investors.
Braiscompany promised significant profits from cryptocurrency trading, but was allegedly operating a parallel financial system using unofficial transfers and high-fee transactions.
The court also ordered the confiscation of R$36 million, although it is unclear how much the victims will receive. Artemio Picanzo, a lawyer representing several of the victims, said they should file civil suits as soon as possible before the funds are seized by the state.
Two defendants were acquitted due to lack of evidence. The others, the judge said, “acted to conceal the illicit origin” of the funds by conducting transactions that mimicked legitimate investment practices but served to enrich insiders.
