Brazilian Federal Police investigates binary options scheme operating in five states.
The Federal Police launched, on the morning of this Tuesday (16), Operation Binary Options to investigate the activities of a criminal organization suspected of operating in binary options platforms and irregular betting houses. The group is being investigated for crimes against the National Financial System.
According to the Federal Police, 11 search and seizure warrants are being executed at residential addresses in the states of Rio de Janeiro, São Paulo, Goiás, Amazonas, and Mato Grosso. The operations are taking place in the cities of São Fidélis, Campos dos Goytacazes, and the capital of Rio de Janeiro, as well as Goiânia, Manaus, Santana do Parnaíba, and Barra do Bugres. Warrants are also being executed at companies located in São Fidélis, in the northern part of the state of Rio de Janeiro.
The court also ordered precautionary measures for four individuals under investigation, including a ban on activities related to investment platforms, games, and betting; restrictions on movement; house arrest during nighttime and weekends; and the use of electronic ankle monitors. The court also authorized the freezing of vehicles, assets, and financial holdings, a measure affecting both individuals and legal entities under investigation, with the suspension of some companies' activities.
The investigations began following information about the possible illicit enrichment of digital influencers from São Fidélis. According to the Federal Police, the group operated with the support of businessmen and contacts abroad, using strategies such as platform manipulation, influencer marketing, and the creation of their own betting systems.
Investigations indicate that, over approximately two years, one of the suspects received more than 28 million reais without proof of legal origin. It is estimated that the organization moved more than 50 million reais illegally.
Those under investigation may face charges such as money laundering, currency evasion, tax evasion, and digital fraud.
The criminal group operated on three fronts:
1 - Chinese individuals provided services for manipulating binary options platforms, which were purchased by some of the suspects and resold to others, promising exorbitant profits.
2 – Some of those under investigation hired digital influencers to promote betting and binary options platforms, with the profit being based on the losses of bettors recruited by the influencer as a clause in the contract.
3 – Another group of those under investigation created their own binary options platform, through which they attracted clients. The group engaged in practices such as blocking accounts and freezing withdrawals when clients were successful in their trades on the platform.
In about two years, one of the suspects alone received more than 28,3 million reais without any financial backing. It is estimated that the criminal organization illegally raised more than 50 million reais.
The investigations also revealed that members of the group were involved in managing unregulated online betting sites prior to the criminal activity related to binary options platforms.
Betting
Binary options platforms are online environments where you bet on the rise (call/up) or fall (put/down) of an asset (currencies, crypto, etc.) in the short term, without actually buying the asset itself. These are high-risk operations, more akin to gambling than traditional investments.
The Brazilian Securities and Exchange Commission (CVM) does not regulate this activity, which means there is no investor protection in case of problems. Those under investigation could face charges of money laundering, currency evasion, tax evasion, and digital fraud.
