Brazilian Federal Police Launch Operation Alcacaria to Combat Crypto Money Laundering

The Brazilian Federal Police launched Operation Alcacaria on Wednesday, targeting a network allegedly involved in providing money laundering services through cryptocurrency. The operation included 62 search warrants, 13 arrest warrants, and the freezing of funds in various bank accounts tied to the entities under investigation.

This effort is part of Brazil’s broader crackdown on financial crimes involving cryptocurrency. According to local media, the operation specifically focuses on financial operators accused of laundering money for criminal organizations across the country. These entities are under investigation for money laundering, currency evasion, running illegal financial institutions, and using fraudulent documents.

The authorities are also investigating cryptocurrency exchanges suspected of collaborating with these operators by providing liquidity for their illegal activities. However, no specific names have been disclosed yet.

In a statement, the Federal Police indicated that the individuals involved were responsible for large-scale money laundering and currency evasion, using crypto in a practice referred to as "crypto-cable."

Operation Alcacaria coincided with Operation Privilege, another anti-crime initiative that shares some of the same suspects. As part of Privilege, authorities issued 13 preventive arrest warrants and 20 search warrants, led by the Rio Grande do Sul Organized Crime Task Force.

This latest operation follows Operation Niflheim last month, which targeted three organizations accused of laundering nearly $10 billion through crypto, sending the funds to countries such as the U.S., UAE, Hong Kong, and China. Operation Alcacaria marks the third major action against cryptocurrency-based money laundering in Brazil within the past month.