Brazilian local government chief and ‘Bitcoin Pharaoh’ suspected of crypto-fueled money laundering

Brazilian law enforcement agencies have searched the home of a local government chief they suspect of leading a crime ring that laundered money using crypto assets – along with a controversial figure dubbed the “Bitcoin Pharaoh”.

The raid took place at the home of Armação de Búzios councilor Lorram Gomes da Silveira, Globo reported, and saw officers confiscate over US$9,250 in cash.

Several agencies were involved in the raid, including Rio de Janeiro’s state ministry Specialized action group for combating organized crime. The agencies, as well as public prosecutors, believe the councilor led a “criminal organisation” that oversaw large-scale “corruption”, using “false documents”.

“The organization,” the agencies say, saw the alderman using crypto as a tool for “embezzlement.”

Lorram is in his third term as a councilor in Armação de Búzios, a position he was first elected to in 2009. From November 2018 to May 2019, he served as chief of staff to the city’s mayor. And it was during this period, says the ministry, that the crimes were committed.

Two other men were also investigated in connection with the same alleged crimes: Glaidson Acácio dos Santos, known as the “Bitcoin Pharaoh,” and Carlos Alexandre da Silva.

Officers appear to believe that Lorram accepted cash payments in exchange for providing Armação de Búzios-based individuals with licenses and other services – and allegedly Farao and da Silva had converted the cash into crypto in an attempt to “hide” the funds.

The ministry says that Lorram is now suspended from performing public duties.

The ministry began its investigations into suspected money laundering violations in April last year, and suspects that other City Hall employees may have participated in the criminal “organization”.

The judiciary, meanwhile, has determined that around $271,000 of Loram’s assets are “unaccounted for” – and may be stashed away in crypto wallets they have yet to access.

The “Pharaoh” was jailed last year and is awaiting trial accused of orchestrating a $7 billion crypto-themed Ponzi scheme that allegedly promised investors 10% returns on their stakes.

Earlier this month, FDR reported, “Pharaoh” declared his intention to run — from prison — as the Christian Democratic Party candidate in October’s general election.

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