Brazil enacted Law No. 15,358, authorizing courts to freeze, seize, and liquidate cryptocurrencies linked to criminal organizations during investigations, even before conviction.
Proceeds from asset sales will fund police equipment, training, intelligence work, and special operations through federal and state public security funds.
President Luiz Inácio Lula da Silva signed the legislation, known as the Anti-Gang Law or Raul Jungmann Law, targeting organized crime groups including the PCC and Red Command.
The law explicitly allows provisional use of seized crypto assets with judicial approval.
Early Liquidation Powers, Exchange Access Blocked
Judges can authorize early sale of confiscated cryptocurrency rather than waiting for final conviction, addressing volatility concerns that could diminish asset value during lengthy trials.
Courts can block suspect access to cryptocurrency exchanges, digital wallets, and payment platforms including Brazil's Pix system without advance notice.
The legislation expands judicial authority to freeze, block, or seize crypto assets when evidence suggests connection to serious crimes. Convicted individuals face permanent exclusion from formal financial and cryptocurrency systems, including regulated exchanges and payment providers.
Read also: Why Bond Yields And Oil Are Dragging Bitcoin Toward $58K
Encrypted Messaging Use Increases Penalties
The law treats use of encrypted messaging apps or privacy tools to conceal criminal activity as an aggravating factor that increases potential sentences. New crimes of "structured social domination" carry penalties up to 40 years for criminal organization leaders.
The legislation creates a national criminal database mapping financial networks of organized crime groups and enables international cooperation for asset recovery and intelligence sharing.
Recent Brazilian anti-money-laundering operations confiscated billions of reais in assets, including substantial Bitcoin holdings, according to government statements.
Brazil has approximately 6.5 million cryptocurrency investors as of February 2026, with stablecoins USDT and USDC comprising roughly 90% of transaction volume.
Read next: Why Canada Banned Crypto Donations That Were Never Used