In his public resignation posted on social media, Lupi emphasized that his name has not been implicated in the ongoing investigations, and he condemned those using their power to exploit citizens. He assured that he had initiated an investigation upon hearing of the claims. Meanwhile, Brazil's federal police have executed Operation No Discount, involving over 700 agents and 211 search warrants throughout the nation. The operation has led to the seizure of assets worth more than $177 million, including luxury vehicles and cash.

The fraudulent scheme reportedly ensnared vulnerable retirees, often in impoverished regions, who unwittingly became members of associations, leading to unauthorized deductions from their pensions. As investigations continue, the INSS aims to establish a task force to recover the lost funds, but the extent of the fraud remains unclear. Notably, Lupi's resignation marks the second high-profile exit in President Luiz Inacio Lula da Silva's administration linked to corruption allegations within a month, following the departure of Communications Minister Juscelino Filho over bribery charges.

As Brazil grapples with these serious accusations of corruption, the credibility of the current government is on the line, echoing the past controversies surrounding President Lula himself, who has faced his own legal troubles in recent years.