Gairika Mitra
The Federal Revenue Service is collaborating with the Brazilian Federal Police to launch a campaign to carry out investigations on tax crimes linked to cryptocurrency transactions in Brazil.
Operation Niflheim is a joint initiative aimed at investigating illegal financial activities, tax evasion, and the use of hidden strategies by those involved in suspicious or unauthorized transactions.
The authorities have, so far, served 23 search warrants in Brazil across four major cities: Caxias do Sul (RS), São Paulo (SP), Fortaleza (CE), and Brasília (DF). A Caxias do Sul-based company that moved over R$19 billion (approx. $3.4 billion) between August 2019 and May 2024 is reportedly the operation’s main target.
Operation Niflheim is also keeping a second company under strict scrutiny. The second target, which also has its base in Caxias do Sul, reportedly moved over R$15 billion in the same period. The two unnamed companies are suspected of participating in complex transactions through a multi-level setup to avoid paying taxes, fund questionable transactions, and perform money laundering.
Complex Cryptocurrency Schemes
The joint investigators designed a four-tier structure to support their operations. The first level targets potential tax evaders who use cryptocurrencies to convert large sums of money. These offenders indulge in paying for under-invoiced imports and hide revenues to avoid tax obligations. It was discovered that even accounting professionals had been involved in some cases.
At the second level, the authorities target shell companies that were created to receive illicit funds. The third level covers when and where the money is received and transactions are filtered. Finally, at the last level, the operation targets authorized companies that carried out exchange transactions and traded cryptocurrencies.
Operation Niflheim revealed that more than half of the deposits identified for one of the companies identified came from individuals with criminal backgrounds and with convictions linked to money laundering, drug trafficking, smuggling, and theft.
Cryptocurrency Movement in Rio Grande do Sul
Brazil authorities also noted that between 2020 and 2024, 16,575 companies in Rio Grande do Sul, each with operations exceeding R$10,000, moved more than R$127.6 billion in cryptocurrency. The 10 largest companies alone accounted for R$119.88 billion, representing nearly 94% of the total.
Around 75,025 individuals pushed transactions with crypto assets above R$10,000, totaling R$20.38 billion around the same time. Out of these, 17 taxpayers moved more than R$100 million, totaling R$4.59 billion.
The highest amount transacted by an individual was R$735,924,202, while the largest by a legal entity was R$41,213,775,466. People of Rio Grande do Sul moved more than R$148 billion in crypto assets in total from both individuals and legal entities.
Social media has been abuzz with this news. Marketing agency Cryptohelper (@Crypto__helper) even revealed that “the operation targeted criminal groups moving funds across several countries.“
Brazilian authorities have seized $1.6 billion in crypto and fiat in a major crackdown on money laundering. The operation targeted criminal groups moving funds across several countries. 💰#Crypto #Brazil #Blockchain #MoneyLaundering
— Cryptohelper (@Crypto__helper) September 12, 2024
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
