Brazilian authorities seized and froze more than BRL5.7bn ($1bn) in assets as part of a fraud investigation following the collapse of private lender Banco Master, according to a police statement.

“We may be facing the largest banking fraud in the country’s history,” Finance Minister Fernando Haddad said, after the bank was liquidated in November 2025, AFP reported.

The Central Bank of Brazil ordered Banco Master to shut down after identifying a severe liquidity shortfall and breaches of financial regulations.

As investigations intensified, police carried out 42 search operations across São Paulo, Rio de Janeiro and other states, targeting properties linked to the bank’s owner and close associates.

Authorities said assets and funds were seized or blocked during the raids, including firearms, watches and high-end vehicles presented by police as evidence. 

Investigators said they are probing suspected offences including participation in a criminal organisation, financial fraud, market manipulation and money laundering.

Banco Master’s controlling shareholder, Daniel Vorcaro, has remained in pre-trial detention since November, when he was arrested while attempting to leave the country.

At the time, federal police chief Andrei Rodrigues told lawmakers that suspected fraud connected to the bank could total around BRL12bn ($2.2bn).

Banco Master was covered by the Brazilian Deposit Guarantee Fund, which estimates compensation payments of BRL41bn ($7.6bn) to roughly 1.6mn investors.