BRAZIL · FINANCIAL CRIME
Key Facts
- —What is happening Brazil’s Federal Police launched Operation São Silvestre on Thursday, 22 October, with 12 search warrants in five states against an alleged cryptocurrency and trading-robot pyramid.
- —Why it matters Promises of daily returns and trading robots are a familiar pitch to US retail investors too, and this case shows how far one such scheme can spread, including abroad.
- —The numbers A court ordered frozen up to BRL 100 million (about US$19.8 million) of 15 people and 13 companies; police estimate more than 10,000 victims between 2018 and 2020.
- —Who is who The Federal Police (PF) is Brazil’s national police and investigates financial crime; the case is led from its Itajaí office in Santa Catarina state.
- —What to watch Whether police name the platforms and suspects, publish a total of money raised, and say how victims, including those abroad, can seek compensation.
- —Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- —What it means for you Treat any offer of fixed daily or monthly returns, or an automated trading robot, as a warning sign, whether it is pitched in Brazil or at home.
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Police in Brazil estimate that an alleged investment scheme built on cryptocurrency and trading robots hurt more than 10,000 people. A court has ordered a freeze of up to US$19.8 million of suspects’ assets.
Brazil’s Federal Police raided addresses in five states on Thursday, 22 October, in a crypto pyramid probe called Operation São Silvestre. A court ordered up to BRL 100 million (about US$19.8 million) of 15 people and 13 firms frozen, the Federal Police said.
Police estimate that more than 10,000 people lost money between 2018 and 2020, in several Brazilian states and abroad. The case is the latest test of how Brazil’s crypto rules and its police deal with online investment fraud.
What the Federal Police Say
The Federal Police (PF) say the groups ran fraudulent schemes with the traits of a pyramid, sold through digital platforms. The platforms offered supposed cryptocurrency investments and trading carried out automatically by robots.
The operation is led from the PF office in Itajaí, a port city in Santa Catarina state, according to NSC Total. The suspects are investigated for criminal association, fraud, money laundering, and crimes against the national financial system and the capital markets.
The asset freeze is meant to preserve property for possible compensation of victims, the PF said. The PF says the 3rd Division of Santa Catarina’s state organised-crime court issued the search warrants, as Diarinho also reported.
Where the Raids Took Place
Officers served 12 search-and-seizure warrants in 10 municipalities, Correio Braziliense reported. Six warrants were in Santa Catarina: two in Blumenau and one each in Florianópolis, Pomerode, Indaial and Rio do Sul.
Two more were in Curitiba, in Paraná state, and two in Pernambuco state, in Jaboatão dos Guararapes and Recife. One each was in Álvares Machado, São Paulo state, and Belo Horizonte, Minas Gerais.
Santa Catarina is a state in southern Brazil, where the case is based. The PF did not say whether any suspect was arrested, and none has been named.
Live Market IntelligenceCrypto — Live Market Board
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
The Returns That Raised Police Suspicion
The PF says the platforms promised returns of 2% to 3% a day, or 10% to 70% a month. It calls those figures incompatible with the market.
Simple arithmetic shows the problem. If 2% a day were earned and reinvested for a year, US$1,000 would grow to roughly US$1.4 million.
Even the low monthly promise of 10% would turn US$1,000 into about US$3,100 in 12 months. At 70% a month the same sum would exceed US$580,000, a result no real investment can deliver.
These figures are simple arithmetic, not police findings. BPMoney also described the scheme as a financial pyramid.
How Brazil Regulates Crypto
The schemes in this case operated between 2018 and 2020. Earlier Rio Times reports cover the audit requirement for crypto firms and the capital rules for exchanges.
Those rules apply to licensed firms. The PF release does not say whether any of the platforms in this case held a licence.
What It Means for US Readers
The PF says money came from investors abroad as well as from Brazil. It does not say whether any victims are American, so US readers should not assume they are affected.
The pitch is nonetheless familiar in the United States. Fixed daily returns and automated trading robots are standard hooks of crypto fraud.
Anyone investing in Brazil should check that a platform is authorised by the central bank or the securities regulator. More context is on the Brazil news hub.
What Is Not Known
The PF has not named the platforms, the companies or the 15 individuals whose assets were ordered frozen. No defence response has been reported by the outlets reviewed.
The total amount raised and the total loss are not stated. It is also unknown whether anyone was arrested or how much of the freeze has been executed.
The BRL 100 million is a ceiling for the ordered freeze, not what was stolen or actually blocked. All suspects are presumed innocent until a court rules.
What Comes Next
BPMoney reports the operation also aims to identify those responsible and trace the funds moved between 2018 and 2020. The PF has asked investors with proof of payments to send it.
That request is a sign the inquiry is still collecting victims, not that charges have been filed. Any prosecution would be decided later by prosecutors and the courts.
Frequently Asked Questions
What is Operation São Silvestre?
It is a Brazilian Federal Police operation launched on 22 October against alleged crypto and trading-robot pyramid schemes. Officers served 12 search warrants in five states.
How much money was frozen?
A court ordered a freeze of up to BRL 100 million, about US$19.8 million, on 15 people and 13 companies. That figure is a cap, not the amount lost by victims.
How many victims are there?
Police estimate more than 10,000 people lost money between 2018 and 2020. They were in several Brazilian states and abroad.
Were any suspects arrested?
None of the reports reviewed mention an arrest. Police have not named the suspects, and no defence response has been published.
Does this affect US investors?
The PF does not say whether any victims are American. The scheme matters mainly as a warning, because fixed daily returns and trading robots are common signs of fraud.
Sources: Federal Police (PF), release of 22 October; Correio Braziliense, 22 October; NSC Total, 22 October; Diarinho, 22 October; BPMoney, 22 October. US$ conversions at BRL 5.04 per US$ (open.er-api.com, 23 October 2026). All accessed 23 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief