What happened to Banco Master, explained from the start

From Máxima to Master

The bank traces back to Máxima Corretora, a brokerage founded in 1974 that became Banco Máxima in 1990 (Wikipédia). Daniel Vorcaro took control between 2018 and 2019, with Central Bank approval, and in 2021 the bank was renamed Banco Master (Wikipédia).

Within a few years, the bank multiplied in size. Between 2019 and 2024, its equity went from R$200 million to R$4.7 billion, and its loan book from R$1.4 billion to R$40 billion (Wikipédia). The group came to include Banco Master de Investimento, Letsbank and, from February 2024, Will Bank (Wikipédia, Bora Investir (B3), Gazeta do Povo).

How the bank attracted money

The main fuel was bank CDs. Master offered CDs paying 120%, 140% and even 160% of the CDI benchmark rate, a return far above the market. On investment platforms, these products were given top billing, and the platforms earned more for every CD issued, which the press flagged as a conflict of interest (CNN Brasil).

For anyone wary of the high rates, the pitch was the FGC guarantee, which covers up to R$250,000 per investor (CNN Brasil). In practice, many people bought based on the return alone. When the bank collapsed, the bill fell to the FGC, a fund financed by the financial institutions themselves.

The attempted sale to BRB

On March 28, 2025, BRB, controlled by the Federal District government, announced it would buy Master. The Federal District's legislature approved the deal in August, but the Central Bank rejected it on September 3, 2025 (Wikipedia (EN), Wikipédia).

The attempted sale is one of the focal points of the investigation. It is also behind reports on conversations between Justice Alexandre de Moraes and the Central Bank governor, covered in Vorcaro and Moraes.

What the Federal Police says happened

According to a Federal Police report released in September 2026, fictitious or unbacked transactions between Master and BRB total about R$17 billion. According to the police, Master sold BRB loan portfolios that did not exist. The loans were routed through a shell company, and the bank's technology team used software to generate bank credit notes (CCBs) in bulk from individual taxpayer IDs (InfoMoney).

Also according to the police, from April 2025 Master managers, with help from BRB managers, began mass-producing fake documents to cover up a R$12.2 billion hole at the state-owned bank (Metrópoles). Investigators say BRB's leadership knew about the transactions and “was not a victim” (Metrópoles). BRB says otherwise: in a filing with the CVM in October 2026, it describes itself as a victim in the inquiry (BRB (Relações com Investidores)). Vorcaro also denies it: in testimony to the Federal Police on October 15, he said the transactions were lawful and caused BRB no losses (Itatiaia, SBT News).

The collapse and the FGC

On November 17, 2025, Vorcaro was arrested at Guarulhos Airport. The next day, the Federal Police launched Operation Compliance Zero, and the Central Bank placed Master under extrajudicial liquidation (CNN Brasil, Wikipédia). Will Bank was liquidated on January 21, 2026 (InfoMoney).

The FGC estimated about R$40.6 billion in guarantees for roughly 800,000 investors (InfoMoney), the largest payout in the fund's history (Wikipedia (EN)). In the first half of 2026, it paid R$40.5 billion to 722,000 investors in the group (InfoMoney). To estimate your own case, use the FGC calculator.

Where the case stands now

• Vorcaro has been in pretrial detention since March 4, 2026 (Jornal do Brasil).
• His plea deal was rejected by the Federal Police and prosecutors. See Vorcaro's plea deal.
• The investigation has had ten phases, with targets ranging from executives to politicians from several parties. See Operation Compliance Zero.
• At the Supreme Court, the ruling on the Federal Police report involving Justice Alexandre de Moraes is on hold after a justice asked for more time (Congresso em Foco).

What Vorcaro's lawyers say

Vorcaro's lawyers say the information leaked to the press is selective, fragmented and taken out of context, and have asked for his pretrial detention to be revoked (Gazeta do Povo, Jornal de Brasília).

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