The Brazilian Federal Police executed Operation Veil of Maya on Monday, targeting 87 shell companies involved in an illegal betting ring that used cryptocurrency to launder and redirect gambling funds abroad. The operation included 9 search-and-seizure orders in São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, seeking the alleged owners of these shell companies. According to the Federal Police, those under investigation may face charges of money laundering, tax evasion, organized crime, and other offenses identified during the investigation. The enforcement action reflects Brazil's broader crackdown on illegal gambling operations, which President Lula has targeted through bans on illegal online casinos. The operation was codenamed 'Veil of Maya' because these shell companies presented objectives that hid their true purposes, creating a facade that impedes the appreciation of reality.
Brazilian Federal Police Execute Operation Veil of Maya Targeting Shell Companies
The Brazilian Federal Police targeted 87 companies in Operation Veil of Maya, though official numbers on their transaction volumes have not been revealed. The specific use of crypto assets in the operations was limited to the transference of funds abroad, according to the Federal Police.
Nine search-and-seizure orders were executed in several locations, including São Paulo, Ribeirão Preto, Porto Alegre, and Canoas, seeking the alleged owners of these shell companies.
"Those under investigation may face charges of money laundering, tax evasion, organized crime, and other offenses that may be identified during the course of the investigation," the Federal Police revealed.
The Federal Police stated that illegal betting has become a major problem for the Brazilian government, aided by the use of digital currency, making it difficult for law enforcement to track these transactions.
Illegal Betting Market Reaches Half of Total Volumes as Government Expands Enforcement
The legal betting market generated $869 million in tax revenue for the Brazilian economy during the first 4 months of 2026. Estimates put the value of the illegal market at half of the total betting volumes.
President Lula announced a ban on illegal online casinos, highlighting the problem that gambling and betting represented for the Brazilian family.
Prediction markets were banned in April. A technical note from the SPA indicated that these companies "simply reproduce the essential elements of fixed quota bets" and need a license to operate in compliance with the country's gambling laws.
FAQ
What did Brazilian Federal Police target in Operation Veil of Maya?
The Brazilian Federal Police targeted 87 shell companies involved in an illegal betting ring that used cryptocurrency to launder and redirect gambling funds abroad. The operation included 9 search-and-seizure orders in São Paulo, Ribeirão Preto, Porto Alegre, and Canoas on Monday.
How large is Brazil's illegal betting market?
Estimates put the value of Brazil's illegal betting market at half of the total betting volumes. The legal betting market generated $869 million in tax revenue for the Brazilian economy during the first 4 months of 2026.
What charges do those under investigation face?
According to the Federal Police, those under investigation may face charges of money laundering, tax evasion, organized crime, and other offenses that may be identified during the course of the investigation.
