Brazil’s Federal Police say they have disrupted a drug trafficking organization accused of exporting cocaine to Europe through the port of Rio de Janeiro and laundering the proceeds through shell companies and cryptocurrency. The operation, called Operation Commodity, led to arrests, searches and court-ordered asset freezes reaching as much as 1 billion reais, or about $196 million.
Route through Rio and concealed cargo
According to the police, the group used commercial shipments to conceal cocaine, hiding the drug in loads of coffee, cement and mortar sent mainly to Europe. Investigators said the network relied on logistics spanning South America, Europe and Asia.
The investigation indicates the organization handled more than 6.5 tons of cocaine from 2021 onward. The shipments were allegedly sent to several European destinations, including France, Belgium, Germany, Slovenia and Spain.
Arrests, searches and one fatal confrontation
Authorities carried out the operation across four Brazilian states: São Paulo, Minas Gerais, Santa Catarina and Espírito Santo. Police said 13 preventive arrests were executed along with 44 search-and-seizure warrants.
Courts also authorized the seizure of assets and freezing of property up to 1 billion reais. During one of the actions, a shootout broke out and a suspect died from gunshot wounds after resisting, according to the police account.
How investigators say the laundering worked
Federal Police said a luxury car dealership in Greater São Paulo formed part of the alleged laundering structure. The business reportedly offered high-end vehicles including Ferrari, Porsche, Corvette and Land Rover models.
Investigators said the group used shell companies to move proceeds from drug trafficking into the formal financial system. According to the police, operators issued invoices without supporting documentation and then used cryptocurrency to conceal and obscure the flow of funds.
The announcement did not detail which digital assets were involved, but it described crypto as one element in a broader laundering scheme tied to export trafficking activity.
Alleged criminal links and next steps
Police said the organization had links to Primeiro Comando da Capital, or PCC, and Comando Vermelho, or CV. The source article notes that both groups were designated Specially Designated Global Terrorists by the Trump administration and had also been targeted in Operation Exchange, an earlier case that authorities said dismantled a $2 billion crypto money laundering ring this month.
In its statement, the Federal Police said suspects could be held responsible, according to their alleged roles, for transnational criminal organization, international drug trafficking and money laundering, while leaving open the possibility of further charges if the investigation uncovers additional offenses.
The case adds to a broader pattern in which investigators are focusing not only on narcotics shipments but also on the financial networks that allegedly sustain them. In Operation Commodity, Brazilian authorities presented cryptocurrency, front companies and high-value assets as connected parts of the same suspected laundering infrastructure.
Source: news.bitcoin.com