Story highlights Arrests were related to Brazilian bribery scandal

Ramón Fonseca and Jürgen Mossack both say they are innocent

(CNN) The two founders of the law firm at the center of 2016's explosive Panama Papers scandal are claiming innocence after they were arrested.

Ramón Fonseca and Jürgen Mossack both face charges of money laundering after authorities raided the firm's Panama City headquarters last Thursday. The investigation of the firm and subsequent raid were related to "Operation Car Wash," an investigation into a sprawling Brazilian bribery scandal.

In a statement , the Attorney General of Panama Kenia Porcell said the firm allegedly worked with contacts in Brazil to "destroy evidence related to those implicated" in the bribery scandal.

"In short: Money from bribes circulate through various places to return laundered to Panama," she said.

Fonseca and Mossack both say they're innocent. Fonseca released a statemen t saying the actions of the authorities are "an attempt to divert the attention" away from other cases.

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