A sudden drop in the Brazilian real just before the announcement of steep U.S. tariffs has triggered a high-profile investigation in Brazil. Authorities are now trying to find out whether anyone used inside information to profit illegally from the currency markets ahead of the news. The case is attracting national and international attention due to its links with former President Jair Bolsonaro and his political circle.
Brazil Launches Probe After Unusual Currency Activity
Brazil’s top court has launched a major investigation into suspicious foreign exchange trading that took place just before a big U.S. government announcement. The announcement involved a surprise 50% tariff on all goods imported from Brazil. It was made on July 9 by U.S. President Donald Trump, and just before that, a large number of Brazilian reals were suddenly sold in the market.
This strange timing raised eyebrows.
According to the court filing on Monday, the sudden move in the currency markets has triggered enough concern that Justice Alexandre de Moraes of Supreme Court approved a full investigation. The court will now try to find out whether someone used secret or inside information to profit from this major news before it became public.
This kind of action—where someone might know something important before others and then uses it to make money—is known as insider trading. It is illegal and considered very unfair because it gives certain people an advantage while others are left in the dark.
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Suspicion Grew After Online Chart Sparked Questions
The buzz started when a chart showing the Brazilian real’s movement on July 9 was shared online by Spencer T. Hakimian, a hedge fund manager and founder of New York-based Tolou Capital Management. The chart showed the real dropping just before the U.S. made the tariff announcement. This means someone may have sold off a lot of the Brazilian currency right before the bad news became public.
This post got attention quickly. It made people wonder: How did someone know what was about to happen?
Following the online post, Brazil’s solicitor general’s office—also known as the AGU—formally asked the Supreme Court to allow a full investigation. On Saturday, the AGU sent this request, saying that the timing of the trades could point to insider trading.
By Monday, the court agreed.
Now, Brazil’s top investigators will look into what happened, who made the trades, and whether they had inside knowledge that gave them an unfair edge over others in the market.
Spencer Hakimian, when informed about the investigation, said, “I am very happy to see Brazil looking into something suspicious. I wish the U.S. would be responsible enough to do the same.” He also told reporters he had no further data or insider information beyond what was seen on the chart.
Deeper Political Connections Under Review
This isn’t just about money. The probe is part of a larger case that touches on politics, international pressure, and Brazil’s democracy.
Investigators are already looking into whether international economic pressure was used to influence Brazil’s legal system. Some believe that the threat of tariffs may have been used as a tool to try to help former President Jair Bolsonaro.
Bolsonaro is currently under investigation in for allegedly planning to stay in power after losing the 2022 elections. He is facing several legal challenges, and the country’s Supreme Court has placed strict measures on him, including the use of an electronic ankle monitor to track his movements.
The new foreign exchange investigation is now being tied into this bigger case. Authorities are also examining the role of Bolsonaro’s son, Eduardo Bolsonaro. He is being investigated for allegedly working with international figures, including Donald Trump, to try to influence Brazil’s court system.
The goal of the investigators is to find out if there was a plan to use the U.S. tariff policy as a weapon to protect Jair Bolsonaro from facing justice.
For now, Brazil’s financial and legal systems are on high alert. Authorities are digging deep into who may have had access to sensitive information about the U.S. tariff announcement—and how they may have used that information to profit in secret.
The case is still unfolding, and Brazil’s institutions are working to uncover the full truth behind the suspicious currency moves.
