Brazil Police have swooped down on what they believe is a sex-themed crypto extortion ring in which victims were blackmailed into handing over tokens.
brazilian media outlets livecoins reported that the investigation was codenamed Operation Sextortion, and was carried out by the Civil Police in Patos de Minas, Minas Gerais.
Three unidentified suspects were arrested as “members of a criminal organization” after a warrant was issued by the Civil Police of the Federal District.
Brazilian Crypto Fraud: Is ‘Sex-Torsion’ a New Criminal Tactic?
Authorities claimed Ring created “fake profiles” for non-existent women on dating apps. Ring operated these accounts on these platforms by going to “predominantly men”. After chatting for a while, the ring members allegedly requested victims to send “intimate” photos and videos.
Upon receipt of these materials, members of the ring allegedly threatened to expose these photographs and videos to the public unless they received payment.
Victims were allegedly asked to pay either in crypto or using the Central Bank’s PIX instant payment platform.
Police came to know about the alleged plan when a 68-year-old man came forward. The 68-year-old said he had fallen victim to the ring.
Authorities said they had conducted two “search and seizure” raids in Patos de Minas. Officers said they have arrested two men (aged 24 and 31) and a woman, aged 27.
All three are being investigated on suspicion of violating laws on organized crime, identity fraud, extortion and money laundering.
If found guilty, he could face up to 29 years in prison.
Last month, police and prosecutors in Brazil were Sweeping New Crypto Seizure Powers Granted as the nation in its glory Fighting against crypto-related fraud,
The government has also created a crypto “working group”. The group comprises lawyers and prosecutors who have been asked to draft proposals for legal reform.