BRASILIA, Jan 15, 2026 (BSS/AFP) - Brazilian authorities on Wednesday announced the seizure of over $1 billion worth of assets as part of a high-profile fraud probe launched after the collapse of a small private bank.

"We may be facing the largest banking fraud in the country's history," Finance Minister Fernando Haddad said Tuesday, as fallout grew from the November 2025 liquidation of Banco Master.

Brazil's Central Bank ordered the shutdown of Banco Master due to a major liquidity crunch and "serious violations" of financial regulations.

On Wednesday, police said in a statement they had conducted 42 raids of properties linked to the owner of Banco Master and his entourage in Sao Paulo, Rio de Janeiro and several other states, seizing and blocking assets and funds worth more than 5.7 billion reais ($1 billion).

Police displayed firearms, watches and luxury cars that were among the confiscated items.

Police said they they were investigating "crimes of criminal organization, financial fraud, market manipulation, and money laundering."

Banco Master majority shareholder Daniel Vorcaro has been in pre-trial detention since November, when he was arrested as he prepared to board an international flight.

At the time, federal police chief Andrei Rodrigues told lawmakers that fraud at the bank could amount to around 12 billion reais ($2.2 billion).

The bank was insured by the Brazilian Deposit Guarantee Fund (FGC) which estimates it will have to pay out 41 billion reais ($7.6 billion) to 1.6 million investors.