Braiscompany Founder Joel Ferreira de Souza Gets 128-Year Prison Sentence for Running a $190M Crypto Ponzi Scheme

Joel Ferreira de Souza was handed a 128-year prison sentence by a Brazilian court on April 18, 2025. Braiscompany set up the $190 million cryptocurrency Ponzi scheme

A Brazilian court on April 18, 2025, sentenced Joel Ferreira de Souza to 128 years in prison for setting up the $190 million Braiscompany cryptocurrency Ponzi scheme, which defrauded about 20,000 investors.

The scam ran from June 2018 until early 2023. It started with an initial investment of 1,200 reais ($242) per month over 12 months and promised an 8% daily return. It was also used to swindle investors.

Prosecutors said the operation involved the use of shell companies and unregulated crypto wallets for laundering funds.

Judge Vinicius Costa Vidor convicted De Souza for heading an unlicensed financial institution, money laundering, and continuing crimes. He also identified De Souza as the mastermind behind the pyramid scheme.

Two other executives, Gesana Rayane Silva and Victor Veronez, were sentenced to 27 years and 15 years respectively. They were found guilty of managing client funds in an intermediary role. In total, the three executives received 171 years in prison.

According to reports, the five people had been accused of organizing the scheme which defrauded investors. The company had managed to raise 1.11 billion reais, or $190 million.

The operators used informal money transfers and performed transactions with high commissions. They were also ordered to seize assets valued at 36 million reais.

However, it remains unclear how much, if any, of the money lost by the victims will be recovered.

Lawyers for the investors will now have to file individual civil claims in order to try and recover some of the funds.

The court acquitted Mizael Moreira Silva and Clélio Fernando Cabral do Ó, declaring them not guilty of all charges. The court ruled that they lacked evidence to prove that the two men were involved in money laundering.

Earlier this year, a Brazilian court sentenced Antônio Carlos de Sá Barreto and Fabrícia Farias Campos to 88 and 61 years in prison for setting up the cryptocurrency Ponzi scheme. The court also approved their extradition to Brazil to serve their sentences.

The two were among the masterminds of the scheme which defrauded about 20,000 investors. The police had launched Operation Halving to investigate the incident.

During the investigation, they searched Braiscompany’s offices and the founders’ homes. They were later arrested in January 2024. After the arrest, the judge ordered the extradition of the two convicts.

The case has highlighted the lack of cryptocurrency regulation in Brazil, with some legal experts calling for closer monitoring of cryptocurrency platforms in the country.