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Brazilian sportsbook Pixbet is facing a major investigation after the Federal Police allegedly identified the use of the tax IDs of 549 deceased people in financial operations linked to illegal currency transfers and suspected money laundering.

The investigation, known as Operation Arena, resulted in police raids at Pixbet-related premises on August 13. Authorities carried out search and seizure operations in Paraíba, São Paulo and other Brazilian states.

According to investigators, the tax IDs, known as CPF numbers in Brazil, were allegedly used to create false identities for unauthorized foreign-exchange transactions.

R$1.1 Billion in Assets Frozen

A federal court in Paraíba, where Pixbet is headquartered, ordered the freezing of up to R$1.1 billion (around $212 million) in assets connected to the investigation.

Authorities allege that the scheme was designed to conceal the origin and destination of funds. Investigators are reportedly examining transactions involving foreign companies and cryptocurrency, with part of the money allegedly flowing through Curaçao.

Brazil’s tax authority, Receita Federal, also reportedly identified more than R$2 billion ($385 million) in suspicious transactions associated with Pixbet between 2022 and 2025.

The allegations remain under investigation and have not been proven in court.

Pixbet Already Suspended by Brazilian Regulator

The investigation comes as Pixbet faces separate regulatory problems in Brazil.

On August 13, the Secretariat of Prizes and Betting (SPA) suspended the operator nationwide after finding shortcomings related to responsible gambling monitoring and the submission of required operational information through the SIGAP regulatory system.

The suspension can remain in place for up to 180 days unless extended through a court ruling. During the suspension, Pixbet customers are reportedly allowed to withdraw their funds, while open bets must be canceled and refunded.

The operator has previously faced regulatory action, including suspensions in April and June 2025.

Court Also Raises Age-Verification Concerns

Pixbet is facing another legal challenge over its age-verification technology.

The Paraíba Court of Justice ordered the suspension of the company’s platforms after identifying deficiencies in systems designed to prevent minors from accessing online betting. The court requires betting operators to implement facial biometric verification, cross-check users against Brazil’s CPF database and use a liveness test to confirm that the person registering is real.

Pixbet appealed the decision, but the appeal was rejected.

Pixbet Reportedly Up for Sale

The growing regulatory and legal pressure has also reportedly put Pixbet’s future ownership in question.

Industry sources say the company is considering a sale, while former CEO Carlos Martin resigned in August. Pixbet’s co-founder and majority shareholder, Ernildo Junior de Farias Santos, has had assets and a mobile phone seized as part of the investigation but has not been arrested. He faces allegations including foreign-exchange evasion, money laundering and participation in a criminal organization.

Pixbet became one of Brazil’s most recognizable betting brands through an aggressive football sponsorship strategy, including a high-profile partnership with Flamengo. That agreement ended prematurely amid reports of payment delays.

Source: https://igamingfuture.com/brazilian-betting-platform-accused-of-using-tax-ids-of-dead-people-to-launder-money/