Brazilian Federal Police has launched Operation Valletta to bust the criminal organization responsible for a billion-dollar fraud involving cryptocurrencies. This is the third phase of Operation Kryptos that began in August 2021. As part of the operation, the authorities have executed one preventive arrest warrant and five search and seizure warrants in the Brazilian states of Mato Grosso do Sul (MS) and São Paulo (SP).
A lawyer managing two MS-based companies became an intermediary for conducting financial transactions between the main company investigated in Kryptos and some foreign-based companies. However, even after the first phase of the operation had been initiated, the company continued its illicit activities. It also created a crypto-asset brokerage to prevent the blocking and confiscation of the values moved under the criminal scheme.
Those convicted may face up to 22 years in jail.