Brazil Sentences 14 for Using Crypto, Shell Firms in $95M Drug Money Laundering Case

A federal court in Brazil sentenced 14 people to jail for laundering more than 508 million reais ($95 million) from international drug trafficking and other violent crimes, wrapping up a years-long investigation into a sophisticated criminal network spanning multiple states.

The two group leaders were each sentenced to over 21 years in prison, while other sentences ranged from 8 to 17 years. All defendants were ordered to repay the full amount laundered, and assets including seized planes and luxury cars were forfeited to the federal government.

The operation, dubbed Terra Fértil, uncovered a scheme that used fake companies across two different states to disguise drug profits.

Prosecutors said the group ran a layered structure with distinct roles: leadership directed the flow of funds, mid-level operators served as front-men for the businesses, and an accounting arm kept the network running through fake documents and financial trickery.

According to the ruling, the network’s strategy followed a process that started with the placement of illicit funds into the system through small bank deposits, layering via false corporate activity and foreign exchange operations, and integration through the purchase of luxury assets.

Prosecutors cited examples like aircraft registered under a bikini shop and high-end real estate.

The group also used the dólar-cabo system, a parallel international money transfer method, and moved large amounts using crypto, according to authorities. Local news outlet Livecoins cites the use of bitcoin BTC$91,451.13 among the cryptocurrencies being used.

The court’s decision can be appealed.