The Civil Police of Santa Catarina achieved a milestone by executing Brazil's largest seizure of cryptocurrency held in self-custody wallets during Operation ClickFix, a law enforcement action targeting a criminal group that used social engineering tactics.
The criminals employed phishing schemes to trick users into installing malicious programs designed to mimic browser errors. Victims were manipulated into introducing malicious code into their operating systems, granting the attackers full control of their devices. The malware subsequently infected sensitive institutions, including Brazilian government agencies, police forces, and judicial systems, as well as companies in Brazil's supply chain.
Executed on September 10, the operation deployed 17 search-and-seizure orders and two arrest orders against the group's leaders. Beyond the cryptocurrency recovery, authorities froze nearly $18.5 million in bank accounts and seized over a million in urban properties linked to the criminal network.
During raids, police located four seed phrases belonging to the group's cryptocurrency wallets. Detectives imported and analyzed the wallets to identify assets and transfer the funds to an institutional account. In collaboration with Chainalysis, which provided analytical tools, over $1.7 million in cryptocurrency was recovered across 13 transactions and placed under police custody.
Detective Eduardo Graebin of the Cybercrime Repression Police Station noted that the seizure demonstrates how specialized technical expertise and appropriate tools prove essential for identifying and securing substantial criminal assets.
Operation ClickFix represents one of several recent enforcement actions against cryptocurrency-related criminal activity in Brazil. In April, Operation Narco Fluxo resulted in arrests connected to a $320 million cryptocurrency money laundering ring. In July, Brazilian Federal Police dismantled an international trafficking organization that moved cocaine to Europe while using shell companies to launder money through cryptocurrency.
