Brazil freezes $2B in assets in drug trafficking probe after US sanctions

Brazilian Federal Police launched an operation on Friday targeting an alleged money laundering network linked to international drug trafficking, days after the US sanctioned two Brazilian nationals and four companies over alleged support for the Primeiro Comando da Capital, or PCC.

The Federal Police said more than 50 officers were deployed under Operation Exchange, executing 13 search-and-seizure warrants and 11 temporary arrest warrants in Sao Paulo state.

The warrants were issued by the 7th Federal Criminal Court in Sao Paulo and covered addresses in the cities of Sao Paulo, Santos, Praia Grande and Santana de Parnaiba.

The court also ordered the seizure of assets, valuables and crypto assets belonging to the suspects up to 11, or roughly $2 billion.

The US Treasury’s Office of Foreign Assets Control said Wednesday it sanctioned Victor Henrique de Oliveira Shimada and Stella Stefanie Nunes Henrique de Oliveira, as well as four companies, for allegedly supporting PCC-linked money laundering operations.

The Treasury said the action targeted a Sao Paulo-based node of a PCC money laundering network, alleging that Shimada acted as a key link between Florida-based PCC operatives and foreign drug traffickers, while Oliveira provided logistical support for laundering operations.

Brazilian investigators said the suspects used a structured system to move illicit funds through cryptocurrency transfers, transportation of valuables including cash, high-value banking transactions, transfers between individuals and companies, and other financial activities.

Preliminary analysis identified transactions exceeding $1.92 billion, according to police.

The suspects may face charges including criminal association, money laundering, tax evasion and other offenses that may be identified during the investigation.

Police said the investigation is ongoing.