Brazil Seizes Record Crypto Funds From Self-Custody Wallets

Key Takeaways

• Police dismantled a cybercrime ring that infected state agencies, freezing nearly $18.5M in bank assets.
• Authorities seized $1.7M in crypto from self-custody wallets, marking Brazil’s largest seizure of this kind.
• Detectives found seed phrases during raids, moving illicit funds into state custody to halt the scheme.

Over $1.7 Million Recovered From Self-Custody Wallets During Operation ClickFix

Brazilian police reached a milestone by executing the largest seizure of funds from self-custody wallets, which do not depend on a third-party service provider to be accessed.

On Wednesday, the Civil Police of Santa Catarina revealed the results of Operation ClickFix, a high-level enforcement action targeting criminal groups that used social engineering to trick users into installing malicious programs to correct false browser errors. Through this scheme, the group pushed victims to introduce malicious code into the OS terminal to obtain full control of the affected devices.

The malware infected sensitive institutions, including Brazilian agencies, the police force, and judicial systems. Several companies that drive the Brazilian market supply chain were also affected.

The operation, executed on September 10, involved 17 search-and-seizure orders and two arrest orders against the group’s heads. The action seized over a million in urban properties and resulted in the freezing of nearly $18.5 million in bank accounts linked to the group’s actions.