Brazil Passes Law Allowing Seizure of Cryptocurrency Linked to Crime

Brazil has made significant strides in its efforts to combat cybercrime by passing a new law that grants authorities the power to freeze, seize, and liquidate digital assets linked to serious crimes.

The law, which was signed by President Luiz Inácio Lula da Silva, expands enforcement powers and redirects seized crypto to public security funding. This shift in approach marks a departure from previous discussions surrounding the creation of a national Bitcoin reserve.

According to Law No. 15.358, authorities can now block or confiscate 'digital or virtual assets' during criminal investigations when strong evidence links them to organized crime, paramilitary groups, or private militias. Judges can order precautionary actions such as freezing wallets, blocking exchange accounts, and restricting access to online platforms.

The law also allows courts to approve early liquidation of seized crypto before final conviction. Authorities will redirect recovered funds to public security budgets, demonstrating a commitment to using seized assets within state systems.