Brazilian Criminal Gang, Use A Crypto Token To Wash Money From Illegal Gold Mining

Crypto tokens are used in money laundering practices in Brazil;.(photo: doc. pixabay)

JAKARTA - Brazil's federal police on Thursday, July 7 carried out an operation against an alleged criminal gang that is said to be using crypto tokens to launder money made from illegal gold mining.

Police arrested five people and issued 60 search and seizure warrants in the operation.

"The operation, called Greed, was linked to a health care company that, since at least 2012, has laundered money from illegal gold mining in the state of Rondonia," federal police said in a statement quoted by Reuters.

According to the police, one of the methods of money laundering is that this criminal group uses its own crypto tokens to move billions of dollars.

The token, created by one of the group's shell companies, was used to "justify the amount arising from illegal gold extraction ... as if it were an investment by a third party interested in receiving dividends," police said.

A banking analysis conducted by the federal police found that between 2019 and 2021, more than 16 billion reais were transferred through group bank accounts.

Police also say the group owns a mining company that launders gold extracted from other illegal mines in the north of the country, using unauthorized environmental permits.