Brazil’s ‘Operation Narco Fluxo’ topples R$260bn illegal betting and laundering ring, which also sees the arrest of prominent businessmen and influencers in the country.
The Brazilian Federal Police (PF) has executed a massive crackdown on a sophisticated financial network accused of laundering billions for illegal betting platforms and international drug trafficking.
In an aggressive expansion of the ongoing Narcobet and Narcovela investigations, Operation Narco Fluxo targeted a high-level intersection of the fintech sector, social media influencers, and organised crime, last week.
The operation highlighted a growing regulatory and criminal enforcement trend in Brazil aimed at purging the ‘gray market’ of its most influential actors.
Operation Narco Fluxo dismantles Golden Cat scheme.
At the heart of the crackdown is Golden Cat Processamento de Pagamento Ltda – a São Paulo-based fintech identified by the Federal Court as the central engine for tax evasion and capital flight.
Golden Cat allegedly concentrated funds collected by illegal betting websites and redistributed these resources to evade tracking from authorities, according to an investigation by the newspaper O Globo.
Federal court documents indicate the company moved more than R$260bn ($52.18bn).
The Federal Court of Santos ordered the 30-day temporary arrest of three Chinese businessmen – Xizhangpeng Hao, Sun Chunyang, and Jiawei Lin – who reportedly orchestrated the cross-border flow of funds.
According to the court ruling, Hao and Chunyang allegedly built the tech stack used to redistribute funds from illegal operators, while Lin appeared to serve as the primary bridge to offshore gambling platform owners.
The investigation also cites Cash Pay Meio de Pagamento, registered at the same address as Golden Cat in São Paulo , as a possible additional link between companies used for processing funds related to the illegal market.
Artists and influencers come under fire
The PF targeted some of the country’s most prominent digital figures, with investigators claiming a symbiotic relationship where artists provided the top-of-funnel marketing for illegal betting while receiving laundered funds in return.
MC Ryan SP was among those arrested. He was described by investigators as the ringleader, while his brother, influencer Mateus Magrini Santana (who was also arrested) was responsible for receiving payments and promoting betting platforms.
MC Poze do Rodo was the target of a preventive arrest warrant for alleged links to companies and financial structures connected to the circulation of funds originating from digital raffles and illegal betting.
Raphael Sousa Oliveira, owner of one of the largest news and entertainment pages on Instagram, Choquei, was arrested for his role in the media operation, which allegedly included biased content favourable to the syndicate and direct promotion of illegal raffles.
The Federal Police also executed arrest warrants and asset freezes at the production companies Love Funk and GR6 , two of the largest funk music producers in Brazil.
According to the Federal Police, Brazilian artists, influencers, and businesspeople allegedly participated in raising and circulating funds within the country, while a corporate structure controlled by the Chinese ensured the internationalisation of these funds.
Investigations estimate the group moved approximately R$1.6bn ($320m) in two years. Among the methods identified are fragmented transfers, the use of front men, shell companies, and cryptocurrencies, such as USDT, for international remittances.
The ‘Raul Jungmann’ crackdown
The operation saw over 200 officers execute 45 search warrants across nine states. Beyond the seizure of luxury vehicles (valued up to R$6.9m ($1.39m)) and firearms, the PF focused heavily on digital assets.
Accounts were frozen across major exchanges, including Binance, Mercado Bitcoin, and Foxbit, as authorities identified the use of USDT (Tether) for fragmented international remittances.
This enforcement surge aligns with the Raul Jungmann Law, enacted in March 2026, which grants banks expanded powers to block accounts tied to unlicensed gambling.
Following a custody hearing, the 5th Federal Court of Santos upheld the temporary arrests of most of the targets, with the exception of influencer Débora Paixão, who was placed under house arrest with electronic monitoring.
Operation Narco Fluxo is an offshoot of Operation Narcobet, which began in late 2025, and Operation Narcovela, which began in April of last year. The investigations started after the seizure of drugs on a sailboat in 2023 and progressed until they identified a connection between international drug trafficking and the use of clandestine betting platforms for money laundering. Those under investigation may face charges of criminal association, money laundering, and tax evasion.
Impact on affiliates
For the legitimate affiliate and igaming community, Narco Fluxo serves as a stark reminder of the reputational and legal risks associated with unregulated ‘gray’ payment processors and high-risk influencer partnerships.
As Brazil tightens its grip on financial flows, the shift toward fully compliant, licensed operations isn’t just a competitive advantage – it’s a prerequisite for survival.
Legal representatives for the accused have denied all irregularities, maintaining that transactions were backed by valid contracts and fiscal documentation. They cited a lack of full access to the case files as a barrier to their formal defense.
This story was first published on Affiliate Leaders’ sister title SBC Noticias Brazil. It was translated to English using AI before being edited.
