Braiscompany Case: Brazilian court convicts company leaders for $190 million cryptocurrency Ponzi scheme
- Ponzi scheme with cryptocurrencies harmed 20 thousand Brazilians
- Braiscompany promised monthly return with Bitcoin
- Court orders partial refund of US$6,2 million
Brazil’s Federal Court has sentenced three individuals involved in a cryptocurrency Ponzi scheme known as Braiscompany to a total of 170 years in prison. The scam is estimated to have caused losses of approximately US$190 million to at least 20 investors across the country.
Defendants Joel Ferreira de Souza, Gesana Rayane da Silva and Victor Augusto Veronez de Souza were identified as responsible for luring victims with promises of monthly returns of between 10% and 15% on Bitcoin investments. The prosecution highlighted that the group operated under the appearance of legitimacy, using a corporate facade to promote the alleged financial service.
Authorities said Braiscompany structured a business model typical of a pyramid scheme, in which former participants were paid with money from new investors. The platform also relied on aggressive marketing strategies on social media, in which members would even create personal relationships with victims before presenting them with investment “opportunities.”
Ferreira de Souza was identified as the main organizer of the operation, using the Braiscompany structure to sustain the scam. In addition to the prison sentences, the defendants were ordered to pay US$6,2 million in compensation to the victims. The investigations are still ongoing, with the police working to recover part of the amounts diverted in digital assets.
The case gained national attention not only because of the amount involved, but also because of Braiscompany's attempt in 2021 to silence public criticism through legal action. At the time, the company sued an investment analysis firm that had classified its operation as suspected of being a pyramid scheme. Despite the censorship attempt, the courts considered Braiscompany's demand for proof of regular operations to be legitimate.
The conviction reinforces the need for continuous monitoring of platforms that offer investments in cryptocurrencies, especially given the growth of products aimed at this market by banks and brokerages in Brazil.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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