According to Wednesday's report, the US Department of Justice intercepted $24 million in virtual currency at the official request of the Brazilian government.
The Department of Justice, or DoJ, said that the Brazilian government had requested help in connection with a crypto fraud program called "Operation Egypt". The authorities in the South American country reported that more than 10,000 Brazilians who suffered losses estimated at about $200 million could have been swindled from the program.
The Department took over funds related to the Brazilian Marcos Antonio Fagundes, one of the people allegedly involved in the case. According to information provided by the Brazilian authorities to the DJ, Fagundes is accused of operating a financial institution without legal permission, fraudulent management of a financial institution, misappropriation of funds, money laundering and violation of securities laws. He and his conspirators allegedly ran an unregistered financial institution in order to keep a crypto of the assets he had obtained from the victims, making "false and inconsistent promises" about how the funds should be invested and exaggerating returns.
The funds were allegedly held on the US crypto exchange. DoJ said that the currency crypto company that kept the accounts complied with an attachment order, which means it was a company under his jurisdiction.
Under the Treaty on Mutual Legal Assistance in Criminal Matters between the United States and Brazil, which has been in effect since 2001, any government may file a request for "proceeds or instruments of crime" to be seized, located in the territory of the other party. A Brazilian court has issued an order calling for the seizure of any Fagundes' virtual currency controlled or held in the United States, which was preceded by an application by the government to the U.S. District Court for Columbia.
