Brazil’s Supreme Court has approved an investigation into possible insider trading involving foreign exchange transactions ahead of the July announcement of a 50% U.S. tariff on all Brazilian imports.
Justice Alexandre de Moraes authorized the probe on Monday after the solicitor general’s office requested permission over the weekend. The request followed a report suggesting a large volume of Brazilian reals were sold just before the tariff was made public, raising concerns that privileged information may have been used.
The report was based on a chart shared by Spencer T. Hakimian, head of New York-based hedge fund Tolou Capital Management. The chart showed currency movement on July 9, the day former U.S. President Donald Trump announced the tariffs.
Hakimian said he had no additional data to support the trend but welcomed Brazil’s move to investigate.
The currency probe is part of a broader case tied to alleged attempts to pressure Brazil’s legal system to drop charges against former President Jair Bolsonaro. Bolsonaro is under investigation for plotting a coup after his 2022 election loss.
Brazil’s attorney general is also investigating Bolsonaro’s son, Eduardo Bolsonaro, over allegations that he sought help from Trump to interfere in the case. As part of the same investigation, the Supreme Court has ordered Jair Bolsonaro to wear an electronic ankle monitor.
