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Brazilian Police target influencer-linked illegal betting scheme

Operation investigates a nationwide network accused of using illegal betting platforms and digital influencers to defraud users.

3 min read
Illegal betting
Key Points
Federal Police carried out search and seizure warrants across five Brazilian states
Scheme allegedly used influencers to promote illegal betting and binary options platforms
Authorities estimate the group moved more than BR50m ($9m) through illicit activities

Brazil's Federal Police executed a search and seizure warrant in Manaus as part of Operation Binary Options, an investigation into a group suspected of orchestrating financial crimes through illegal betting and binary options platforms.

In total, authorities served 11 search warrants at residential addresses across five states: Amazonas, Rio de Janeiro, São Paulo, Goiás and Mato Grosso, as well as at two companies based in the countryside of Rio de Janeiro.

The operation also resulted in court-ordered precautionary measures against four suspects.

According to the Federal Police, the group is under investigation for crimes against Brazil's National Financial System, including money laundering, foreign exchange evasion, tax evasion and digital fraud.

Judicial authorities authorized the seizure of vehicles, bank account balances and financial investments linked to the suspects.

Three companies were also targeted with two orders to suspend their activities.

Investigators say the case began after authorities identified signs of illicit enrichment involving digital influencers. Further inquiries uncovered what police describe as a structured criminal network involving businesspeople, influencers and international contacts, including individuals based in China.

The Federal Police allege the organization operated through three main fronts. The first involved selling services that promised manipulation of betting platforms to guarantee profits.

The second relied on influencers to promote illegal betting and investment schemes to a bigger audience, encouraging people to deposit funds.

The third involved the creation of a proprietary binary options platform designed to retain user funds.

According to investigators, when users began to record profits on the platform, accounts were blocked and withdrawal requests frozen, effectively preventing customers from accessing their money.

Authorities believe this practice allowed the group to profit directly from users' losses while maintaining the appearance of a legitimate betting or investment service.

The Federal Police estimate that the whole scheme may have moved more than BR50m through illegal channels during the period under investigation.

Good to know

In just under two years, one of the main suspects is believed to have received more than BR28.3m without proof of lawful origin

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