A Brazilian federal court has sentenced the founder of a major crypto Ponzi scheme, known as Braiscompany, to more than 128 years in prison after defrauding over 20,000 investors and causing losses amounting to nearly $190 million.
The Braiscompany Scam Unveiled
The court found Antonio Neto Ais, the founder and CEO of Braiscompany, guilty of running an elaborate financial fraud scheme that lured thousands of investors through promises of unrealistic returns. He has been sentenced to 88 years and 7 months in prison.
His wife and co-founder, Fabrícia Farias, was also found guilty and received a prison sentence of 61 years and 11 months. Together, the couple orchestrated one of Brazil’s largest crypto-related fraud cases in recent history.
False Promises and Massive Losses
Braiscompany attracted investors by offering monthly returns of up to 8% on crypto investments, particularly in Bitcoin and fiat currency. These promises raised immediate red flags, leading Brazil’s Federal Police to launch a detailed investigation.
Authorities revealed that the company operated as a classic Ponzi scheme, where funds from new investors were used to pay returns to earlier investors—without any legitimate business or trading activity generating profit.
Fugitives in Argentina
Both Antonio and Fabrícia became fugitives in February 2023 when Brazilian law enforcement initiated criminal proceedings. They were reportedly living in Argentina, where Antonio had changed his name to “Felipe” in an attempt to evade arrest.
Their eventual arrest came through the collaboration of Interpol and Argentina’s Federal Police, who detained them in June 2023, following a global alert issued by Brazil.
Legal Repercussions and Broader Impact
The court found the couple guilty of financial fraud, money laundering, operating without a license, and conspiracy. Their sentencing reflects a broader global effort to clamp down on crypto Ponzi schemes that exploit the growing popularity of digital assets.
Over BRL 1.1 billion (approx. $190 million USD) was lost by over 20,000 victims, many of whom had invested their life savings, believing in the false promises of high returns.
A Wake-Up Call for Crypto Investors
This high-profile case serves as a stern warning to crypto investors worldwide. While cryptocurrency offers innovative financial opportunities, it also opens the door for fraudsters to exploit market hype.
Regulators and investors alike must stay vigilant. Unrealistic guarantees like “monthly 8% returns” should be treated as red flags, not opportunities.
