This month, Brazilian government officials uncovered evidence of suspected money laundering associated with the Tandera Militia group. According to reports from O Globo and Portal do Bitcoin, the Public Ministry of Rio de Janeiro (MPRJ) believes that the militia has been using an exchange named Tradingpfx Ecommerce to carry out their activities. The trading platform is now defunct and its channels have been taken offline.

The Tandera Militia is an illegal paramilitary unit believed to be commanded by figures including Danilo Dias Lima. Government officials allege that Lima has utilized funds acquired through the militia's criminal activities to purchase luxury goods. In response, the MPRJ and police launched a joint operation called “Operation Epilogue”. During this operation, they apprehended six suspects and carried out 25 searches. It is during these searches that they discovered evidence that an affiliate of the Tandera Militia has moved around 32,000 USD worth of funds in crypto via Tradingpfx Ecommerce between September of last year and March of this year, with the help of a financial operator and partner of the exchange.

Actions taken by the Brazilian government demonstrate that criminals are turning to cryptocurrencies as a tool for money laundering. Criminals’ attempts have been made evident through investigations conducted with regards to the Tandera Militia group and a crypto scam ring. In the former case, records show that funds were moved in crypto between September 2019 and March 2020, while the later case saw funds being raised from 7,500 people.

Although the ability to move funds quickly and discreetly gives cryptocurrency and other digital assets more appeal to malicious actors, government agencies globally have been developing schemes to monitor this movement and overall usage of cryptocurrency in criminal activities. Such activities include tracking and instituting Know Your Customer (KYC) protocols, which prohibit the use of anonymous wallets, as well as developing techniques such as blockchain forensics which allow more efficient detection and tracking of illicit activities. In Brazil, as demonstrated by the actions taken against the Tandera Militia, the government is actively investigating reports of money laundering and other criminal activity associated with the usage of cryptocurrency.



Other News from Today