Brazil: Police probe illegal $9.2m betting scheme using influencers

Brazilian authorities are investigating an alleged illegal betting scheme that used digital influencers and offshore options platforms to defraud online users, according to details revealed during an investigation.

The operation, which is being examined by the Federal Police, allegedly generated more than BR50m ($9.2m) over two years.

Investigators identified João Marcos Simião, 24, and Matheus Cabral, 26, both from Rio de Janeiro, as the suspected leaders of the scheme.

Despite publicly displaying a high-end lifestyle on social media, authorities say neither had formal employment compatible with their assets.

According to police, the group operated through international binary options platforms and paid influencers a share of the losses incurred by users they recruited.

The duo would use promotional content featuring luxury cars, jewellery and travel to attract new participants. Authorities also allege that accounts belonging to users who recorded profits were blocked.

Investigators further identified the use of so-called "Chinese sessions", in which participants paid for access to supposed privileged betting information allegedly sourced from contacts abroad.

Shell companies, including X Seven Investimentos and JM777 Marketing, were reportedly used to launder proceeds.

Search and seizure warrants resulted in the confiscation of nine luxury vehicles, 17 computers, 12 mobile phones, jewellery and approximately BR25,000 in cash.

The case adds to a growing list of enforcement actions targeting illegal betting activity in the country, including a separate lottery scam known as the "winning ticket" scheme, in which victims were deceived into handing over large sums of money after being promised access to a prize-winning lottery ticket.

Authorities have warned that both cases highlight how traditional scams are being repackaged and amplified through digital platforms, social media exposure and influencer-driven promotion.