15 October 2026
$24M In Crypto Seized From One of Brazil’s Biggest Pyramid Schemes
The U.S. Department of Justice (DOJ) made an announcement on Wednesday stating that they have seized some $24 million in cryptocurrencies from a scheme that defrauded “tens of thousands of Brazilians” of over $200 million.
The seizure was made after a request from the Brazilian government.
Brazil asked DOJ to seize crypto funds held in the U.S. by Marcos Antonio Fagundes, who is facing multiple charges in Brazil, including illegally operating a financial institution, securities violations, and money laundering.
As per the reports, Fagundes was operating a scheme that offered investments in cryptocurrencies over the Internet and in person.
After investigating, the authorities of Brazil found that few of the investors’ funds were returned to them and that Fagundes' return on investment claims was false and exaggerated. There was only a small amount of the sum re-invested in digital assets, as Fagundes and his partners kept other funds for themselves.
As part of the Treaty between the United States of America and the Federative Republic of Brazil on Mutual Legal Assistance in Criminal Matters, U.S. seized Fagundes' U.S.-based holdings.
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