Brazilian President Luiz Inácio Lula da Silva signed into law a sweeping set of reforms aimed at cracking down on organized crime, and cryptocurrencies are at the center of the strategy.
Under Law No. 15,358, passed on March 25, crypto-assets confiscated from criminal organizations can be entered into Brazil’s public security system.
This includes funding for police equipment, intelligence operations and officer training. The law expressly allows temporary use of these assets pending a final judgment, provided it is approved by a judge.
Instead of treating seized cryptocurrencies as a potential reserve of value for the state, an idea floated by some crypto advocates, the government is using it as a tool in the crackdown on groups like the PCC and Comando Vermelho.
The decision is in line with Brazil’s broader efforts to modernize the justice system’s handling of digital property and organized crime.
The legislation also significantly expands the legal authority to freeze, block or seize crypto assets during investigations, including suspending access to exchanges, digital wallets and online platforms. Once convicted, individuals permanently lose access to the formal financial and crypto systems.
The law defines the use of encrypted messaging apps or privacy tools to hide criminal activity as an aggravating factor, increasing potential penalties.
It also enables international cooperation on asset recovery and intelligence sharing and creates a national criminal database that integrates financial structures of known criminal groups.
