Supreme Court Upholds Bail for Hacker in Cryptocurrency Money Laundering Case

Brazil’s Supreme Federal Court (STF), under Justice Cármen Lúcia, has upheld a decision requiring a hacker to pay R$ 50,000 bail. The hacker is accused of infiltrating the systems of the Telêmaco Borba City Hall in Paraná and subsequently laundering the stolen funds through cryptocurrencies.

The hacker allegedly used two cryptocurrency exchanges, Braziliex and Mercado Bitcoin, to launder over R$ 400,000. He then claimed he lacked the funds to pay the bail and requested its suspension. This request was denied by both the federal court and the Superior Tribunal of Justice (STJ). The STF’s recent denial effectively ends his avenues for appeal.

Hacker Stole Funds from City Hall Account and Transferred to Crypto Exchanges

The Federal Police had been investigating the hacker for allegedly stealing funds from the City Hall’s Caixa Econômica bank account and transferring them to cryptocurrency exchanges.

According to court documents, the hacker’s pre-trial detention was ordered on November 20, 2023, by the Fourteenth Federal Court of Curitiba/PR, citing a risk to public order. The documents allege the hacker held a leadership role in a “criminal organization dedicated to bank fraud, theft, and concealment of assets within the Telêmaco Borba City Hall.” The arrest warrant was executed on April 3, 2024.

In addition to being part of a criminal organization and committing theft, the money laundering charges have complicated the hacker’s legal situation. Even as a first-time offender, the act of laundering money has worsened his situation in the eyes of the court.

Consequently, the federal court set the bail at R$ 50,000 to ensure he could respond to the charges while free. Despite appealing through all possible legal channels, the STF’s decision concludes the case.

The court stated, “The setting of bail is justified as a way to maintain the Defendant’s connection with the court, a connection necessary given the magnitude of the facts in which the Investigated party was allegedly involved. The amount set complies with the provisions of art. 325, I of the CPP and is justified by the financial transactions attributed to the accused [withdrawals made by CASSIO ****** from accounts held at MERCADO BITCOIN (personal and corporate) and BRAZILIEX, after the preceding theft, total at least R$ 404,906.44 (four hundred and four thousand nine hundred and six reais and forty-four cents)].”

The Federal Police have already conducted several searches and seizures of the suspect’s assets, all of which are now under the court’s control.

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