Brazil enacted law number 15,358, granting courts the authority to freeze, seize, and liquidate cryptocurrencies linked to criminal organizations even before a final judgment in the investigation process.
The proceeds from asset sales are used for police equipment, training, intelligence gathering, special operations, etc., through federal and state public security funds.
President Luiz Inácio Lula da Silva signed this bill known as the so-called 'Anti-Gang Law' or 'Hawl Jungmang Law', which targets organized crime groups including PCC and Comando Vermelho.
This law specifies that seized cryptocurrency assets may be provisionally used with court approval.
Authority for early sales, blocking access to exchanges
The judge may allow the early sale of seized cryptocurrencies without waiting for a final guilty verdict, alleviating concerns that asset values may be compromised due to price volatility during long trials.
The court may block access to payment platforms including the defendant's cryptocurrency exchanges, digital wallets, and Brazil's Pix system without prior notice.
This law expanded judicial powers to freeze, block, or seize cryptocurrency assets when there are circumstances indicating a connection to serious crimes. Individuals with confirmed guilt will be permanently excluded from the official financial system and cryptocurrency systems, including regulated exchanges and payment service providers.
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Increased penalties for using encrypted messengers
This law considers the use of encrypted messenger apps or privacy tools to conceal criminal activities as an aggravating circumstance. A new type of crime called ‘structural social domination’ has been established, allowing leaders of criminal organizations to be sentenced to up to 40 years.
Furthermore, this law establishes a national crime database to track the financial networks of organized crime groups and enables international cooperation for asset recovery and information sharing.
According to the Brazilian government's announcement, billions of reais worth of assets, including Bitcoin, were seized in a recent money laundering operation.
As of February 2026, there are approximately 6.5 million cryptocurrency investors in Brazil, with stablecoins USDT and USDC accounting for about 90% of total trading volume.
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