After what feels like far too long, news today that TelexFree co-founders Carlos Wanzeler and Carlos Costa have been arrested in Brazil.

Federal Police swooped in on Wanzeler and Costa in the early hours of Tuesday, December 16th.

Wanzeler was apprehended on the way to the gym. Costa was arrested at his home in Vila Velha.

Globo Media were at the scene to snap a photo of Costa in custody:

Wanzeler and Costa were arrested in connection with “concealment of assets” (money laundering), relating to TelexFree.

Carlos Wanzeler (right), co-founder of TelexFree’s US operations, has been on the run from US authorities since 2014.

Wanzeler was stripped of Brazilian citizenship in 2018, paving the way for extradition to the US.

Carlos Costa (right), who ran TelexFree’s Brazilian operations (Ympactus) with Wanzeler, has had run ins with Brazilian authorities pertaining to tax fraud, money laundering and asset forfeiture.

In 2013, a year before TelexFree was shut down, Costa (right) declared God used him to create the $3 billion dollar Ponzi scheme.

Despite their criminal history, the lawyer representing Wanzeler and Costa in Brazil feigned ignorance when queried about the arrests.

We were surprised by this decision. We will need to know the inquiry that led to this action.

In addition to the arrests, fifteen Federal Police officers executed search and seizure warrants on three locations.

Criminal matters tend to progress slowly in Brazil but stay tuned for updates…