Brazilian President Luiz Inácio Lula da Silva enacted a sweeping series of reforms aimed at dismantling organized crime, and cryptocurrencies are at the center of the strategy.
According to Law No. 15,358, enacted on March 25, crypto assets confiscated from criminal organizations can be channeled to Brazil’s public security system.
This includes funding for police equipment, intelligence operations and training of officers. The law explicitly allows the provisional use of these assets before a final sentence, as long as it is approved by a judge.
Instead of treating seized cryptocurrencies as a possible store of value for the state, an idea raised by some cryptocurrency advocates, the government is using them as a tool in the repression of groups like the PCC and Comando Vermelho.
The decision aligns with Brazil’s broader efforts to modernize the judicial system’s handling of digital property and organized crime.
The legislation also significantly expands judicial 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 formal financial and cryptographic systems.
The law defines the use of encrypted messaging apps or privacy tools to hide criminal activity as an aggravating factor, increasing potential sentences.
It also enables international cooperation for asset recovery and intelligence sharing, and creates a national criminal database that integrates the financial structures of known criminal groups.
