On July 10, Brazil's Federal Police executed nine simultaneous search-and-seizure warrants across São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, targeting a money laundering network built on 87 shell companies. The operation, named Veil of Maya, focused on illegal gambling proceeds being funneled abroad using cryptocurrency to exploit cross-border transfer speed. The Ministry of Finance and the Prizes and Betting Secretariat provided intelligence that identified the targets. Brazil's legal betting market generated $869 million in tax revenue in the first four months of 2026, while the illegal market represents roughly half of all betting volume.
Federal Police Execute Operation Veil of Maya Across Four Cities
All 87 companies existed to appear as legitimate businesses while moving illegal gambling money out of the country. Cash from illegal betting flowed into the shell-company layer, converted to crypto, and exited Brazil digitally. According to the Brazilian Federal Police, "Those under investigation may face charges of money laundering, tax evasion, organized crime, and other offenses identified as the probe continues." No figures on total volumes or seized assets have been released.
Operation Exchange Dismantles $2 Billion PCC-Linked Network
Five days before Veil of Maya, on July 5, the Federal Police dismantled a roughly $2 billion crypto laundering ring tied to the PCC, Brazil's most powerful criminal organization, in Operation Exchange. Fifty officers executed 13 search warrants and 11 arrest warrants. The network used crypto transfers, cash couriers, and large bank transactions to move money between Florida and Brazil. The US Department of the Treasury's OFAC stated that "A key suspect helped launder more than $30 million in illicit US proceeds, 'utilizing cryptocurrency to move funds back to Brazil on behalf of PCC.'"
Andrei Rodrigues, director-general of the Brazilian Federal Police, said the US sanctions designation forced his team to execute warrants early, allowing the main target to escape. "If there hadn't been this designation, maybe the outcome would be different, and we could have located this person. There was damage to our investigation," Rodrigues stated.
SPA Bans Unlicensed Prediction Markets in April
In April, the SPA banned unlicensed prediction markets, ruling they "simply reproduce the essential elements of fixed quota bets" and require a gambling license. President Lula separately pushed a ban on illegal online casinos. Unlicensed venues with Brazilian users face regulatory action, and users face potential asset freezes.
Bitcoin Holds Near $62,700 During Enforcement Actions
Bitcoin held near $62,700 on July 9 before recovering toward $64,000, with total crypto market cap around $2.25 trillion. Brazil is targeting the financial infrastructure underneath illegal gambling operations: shell companies, OTC crypto desks, and cross-border transfer rails.
FAQ
What did Brazil's Federal Police do on July 10?
Brazil's Federal Police executed nine simultaneous search-and-seizure warrants across São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, targeting a money laundering network built on 87 shell companies that moved illegal gambling proceeds abroad using cryptocurrency.
What was Operation Exchange?
Operation Exchange was a July 5 Federal Police operation that dismantled a roughly $2 billion crypto laundering ring tied to the PCC criminal organization, involving 50 officers, 13 search warrants, and 11 arrest warrants targeting a network moving money between Florida and Brazil.
What regulatory action did the SPA take in April?
In April, the SPA banned unlicensed prediction markets, ruling they require a gambling license because they "simply reproduce the essential elements of fixed quota bets."
