Operation Commodity: Brazilian Police Smash $196 Million Cocaine and Crypto Laundering Ring
Brazilian Federal Police have taken down a high-profile drug trafficking ring that used cryptocurrency to launder proceeds from cocaine exports to Europe, in an operation dubbed ‘Operation Commodity.’ Announced on Thursday, the operation targeted a group that smuggled cocaine hidden in shipments of coffee, cement, and mortar through the port of Rio de Janeiro to several European countries, including France, Belgium, Germany, Slovenia, and Spain.
Investigations revealed that the group processed over 6.5 tons of cocaine since 2021, using a logistics network spanning South America, Europe, and Asia. The operation involved 13 preventive arrests and 44 search-and-seizure warrants across the states of São Paulo, Minas Gerais, Santa Catarina, and Espírito Santo. Courts ordered the seizure of assets and freezing of property valued at up to 1 billion reais (nearly $196 million). A shootout occurred during one of the raids, resulting in the death of a suspect who resisted arrest.
The group was linked to the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV), two criminal organizations recently designated as Specially Designated Global Terrorists by the Trump administration. These groups were also targeted in a previous operation, ‘Exchange,’ which dismantled a $2 billion crypto money laundering ring earlier this month.
Police revealed that a luxury car dealership in Greater São Paulo, offering brands like Ferrari, Porsche, Corvette, and Land Rover, was used as part of the money laundering scheme. The traffickers employed shell companies to introduce illicit funds into the Brazilian financial system, issuing invoices without supporting documentation and using cryptocurrency to obscure transactions.
‘The suspects will be held accountable for the crimes of transnational criminal organization, international drug trafficking, and money laundering,’ the Federal Police stated, noting that additional charges may arise as investigations continue.
This operation highlights the ongoing use of cryptocurrency by criminal networks to launder money, despite increased regulatory scrutiny in Brazil and globally.