The Public Prosecutor’s Office of São Paulo and the Federal Police launched Operation Hydra on Tuesday (25/02), targeting financial companies 2GO Bank and Invbank. Authorities allege that both fintechs served as instruments for money laundering by the First Capital Command (PCC), employing complex financial schemes to obscure the true beneficiaries of illicit transactions. The investigation revealed intricate financial engineering methods designed to funnel criminal proceeds through these platforms.
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Police Officer Arrested
As part of the operation, civil police officer Cyllas Salerno Elia Júnior was arrested, and authorities executed ten search and seizure warrants at locations in São Paulo, Santo André, and São Bernardo do Campo. Additionally, the Court authorized the freezing of eight bank accounts, amounting to R$27.9 million, and temporarily suspended the economic activities of the targeted fintechs. The investigation originated from a plea bargain agreement with Antônio Vinicius Lopes Gritzbach, who was murdered at Guarulhos International Airport in November 2023. Gritzbach’s collaboration with the Special Task Force to Combat Organized Crime (Gaeco) provided key leads to the money laundering scheme.
New Criminal Charges
The crackdown on fintechs comes just four days after Gaeco filed a new complaint against civil police officers and businessmen linked to the PCC. On Friday (21), prosecutors submitted a request for 12 individuals—some also implicated in Gritzbach’s murder—to be tried for money laundering and crimes against public administration, including embezzlement and passive corruption. This was the second indictment under Operation Tacitus, another major investigation by Gaeco and the Federal Police.
Police Involvement
Prosecutors allege that corrupt police officers manipulated investigations into multiple crimes in exchange for bribes, shielding certain PCC members from prosecution. Additionally, investigators reportedly stole luxury watches from Gritzbach and later offered him assistance in criminal cases in exchange for money.
Fraud in Bolsa Família
As part of Operation Hydra, investigators are also examining how fintechs laundered PCC funds through the federal social welfare program Bolsa Família. Initial findings indicate that program beneficiaries engaged in a high volume of financial transactions, triggering alerts from the Financial Activities Control Council (Coaf) in April 2023. One notable case involves a domestic worker from Recife (PE), a Bolsa Família recipient who receives R$350 per month. Between November 2023 and April 2024, she received 68 Pix transfers totaling R$8,295 and subsequently returned R$6,350 in 113 separate transactions, indicating a money laundering operation disguised as social benefit transactions.
Analysis:
Operation Hydra exposes the growing sophistication of money laundering networks linked to organized crime in Brazil, particularly the First Capital Command (PCC). The use of fintechs as financial intermediaries demonstrates how criminal groups have evolved beyond traditional cash-based laundering schemes, now leveraging digital banking to obscure illicit transactions. This highlights a critical gap in financial oversight, where regulatory mechanisms struggle to keep pace with technological advancements exploited by criminal organizations.
The arrest of civil police officer Cyllas Salerno Elia Júnior and the broader corruption allegations reinforce a recurring issue in Brazilian law enforcement: the infiltration of organized crime into state institutions. The ability of PCC-linked police officers to manipulate investigations and shield criminals from prosecution weakens public trust and complicates efforts to dismantle these networks.
One of the most alarming aspects of this case is the suspected exploitation of the Bolsa Família program as a vehicle for money laundering. The use of social welfare beneficiaries to facilitate illicit transactions not only threatens the integrity of the program but also demonstrates the PCC’s ability to infiltrate multiple layers of Brazilian society.
