Here is the English translation:
The article will use the Braiscompany case as an example to teach you how to identify Ponzi schemes and take practical measures to ensure investment safety.
Author: Beosin
In April 2025, the Brazilian crypto investment platform Braiscompany's Ponzi scheme was exposed, approximately 20,000 investors losing $190 million due to false high-return promises, and the mastermind was sentenced to 128 years in prison. This incident not only revealed the high risks of cryptocurrency investments but also reminded us that protecting our funds is crucial in this market full of opportunities.
This article will use the Braiscompany case as an to identify Ponzi schemes and take to.
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Braiscompany Scam: Why Did Investors Fall for It?
Braiscompany, founded in 2018, claimed to provide a fixed monthly return of 8% through cryptocurrency trading, attracting numerous retail investors. However, investigations revealed that the platform never conducted real investments, but instead used new investors' funds to pay "returns" to early investors - a typical Ponzi scheme. In early 2023, the payments, and the funds capital chain broke, leaving 20,000 victims with total losses. Currently, a Brazilian court has sentenced the three former executives of the now-dissolved cryptocurrency company Braiscompany to a total of 171 years in prison, one of the most severe judgments against a crypto fraud in the country.
The main culprit, Joel Ferreira de Souza, was sentenced to 128 years in prison. The other two - Gesana Rayane Silva and Victor Veronez - were sentenced to 27 and 15 years in prison respectively for managing customer funds and serving as key intermediaries in the scheme.
The success of continues the scam relied on the following factors:
● False Advertising: Braiscompany used aggressive marketing, fabricated high-profile partnerships to mislead investors.investors.●● Lack of Of Weak crypto market regulation platform in Brazil, with the platform not underundergoing effective KYC/AML review.
● Money Laundering Network: The platformaled companies and hide and unregeredulated obscure fund flows.
This case reminds us that the anonymity and decentralized nature of crypto investments provide a breeding ground for fraud while offering freedom.
How Crypto Investors Can Identify Ponzi Schemes
To avoid becoming the next victim, must learn to recognize common characteristics of Ponzi schemes:
1. Excessively High Return Promises: Any project guaranteeing fixed high returns (especially unrealistically high) should be suspicious. The crypto market is highly volatile, and fixed returns are usually unre.
2. Lack of Transparency: The platform refuses to disclose fund usage, strategies, or team backgrounds.. For example, Braiscompany never publicly shared its trading records.
3. High-Pressure Marketing: Scams often use aggressive advertising, celebrity endorsements or ""limited-time offers" rush investors to quickly enterroll.market.4.4Complex Restrictions: Braiscomprequiredcompfunds to be locked for a year, and difficult withdrawals are typical characteristics of5.
.5. Anonymous Team: If the project team's identity is unclear or refuses KYC verification,, caneeded..
After discovering these, users should immediately beution and and investigate deeply.
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Viewing Brazil's Blockchain Regulatory Policies from from This Case
In recent years, Brazil has actively improved its regulatory framework for blockchain and cryptocurrencies to protect fraud and protectectinvestors.
Regarding Regulatory Bodies
1 . Brazil): forulating, payment systems, crypto-related financial activities. Currently Currently Central conducting public consultations on this issue.
Securities and Exchange Commission (((CVM): Primarily responsible for formulating and implementing regulatory policies for securities and other other financial financial assets to ensure market fairness and transparency..
3CryptoeconomEconomics Association (ABCripto): This association is dedicated to establishing best practices for crypto market operations as an important self-regulatory industry initiative. Although membership is not is not mandatory, it is generally an viewed as an important for reliable governance practices.
Current Relevant Legislation
1. Law No. 14,478 (2022): This law establishes the asset service provider (((VASP) regulatory framework,, stipulating that all VASPs operating in Brazil must obtain prior authorization and strictly comply with anti anti-money laundering and counter-terrorism financing (AML/CTF) regulations.
2. Law No. 12,865 (2013): This law primarilyishes regregulation of financial technology, though mainly targeting traditional financial institutions, some of its provisions also apply to the cryptocurrency domain.
Building a Secure and Compliant Blockchain Ecosystem
The Braiscompany case is a microcosm of the immature regulation in the global crypto market. The severe judgment by Brazilian authorities (128 years imprisonment for the mastermind) indicates that the government is intensifying its crackdown on financial crimes. However, law enforcement alone is insufficient to eradicate the problem. The blockchain industry needs collaborative efforts between technology and regulation. Beosin is committed to promoting the standardized development of the blockchain industry. We collaborate with global regulatory bodies, law enforcement agencies, and project parties, providing compliance consulting, security audits, and on-chain tracking services to help build a transparent and secure crypto ecosystem.
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