US, Brazilian Law Enforcement Seize $24 Million in Cryptocurrency Generated Through Online Fraud
upstart writes in with an IRC submission:
US, Brazilian law enforcement seize $24 million in cryptocurrency generated through online fraud:
US and Brazilian authorities have seized $24 million in cryptocurrency connected to an online scheme that allegedly defrauded "tens of thousands" of investors.
Upon request from the government of Brazil, US law enforcement participated in "Operation Egypto," a Brazilian federal investigation into the suspected scam, the US Department of Justice (DoJ) said on Wednesday.
The collaborative effort, made under the Mutual Legal Assistance in Criminal Matters treaty, tracked down suspect Marcos Antonio Fagundes, who is being charged with the operation of a financial institution without legal authorization, fraudulent management of a financial institution, misappropriation, money laundering, and the violation of securities law.
[...] After the Brazilian court issued a seizure order for any cryptocurrency held by Fagundes in the US, $24 million was recovered with help from the cryptocurrency exchanges holding his wallets.
The investigation is ongoing. However, Brazilian authorities, the FBI, and other parties intend to hold the cryptocurrency as part of future forfeiture proceedings to try and compensate the investors involved, at least, to some level.
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