Brazil Enacts Law to Seize Crypto from Organized Crime

Brazilian President Luiz Inácio Lula da Silva has signed a comprehensive new law granting authorities expanded powers to seize cryptocurrency and other assets from organized crime groups, directing the proceeds toward public security initiatives. The legislation, known as Law No. 15.358 or the Legal Framework for Combating Organized Crime, was enacted in Brasília following months of congressional debate and aims to disrupt the financial networks of criminal organizations.

The law empowers judges to freeze, block, or seize digital assets, including those in cryptocurrency wallets, exchanges, and online platforms, during criminal investigations. This authority extends to traditional property and financial rights, allowing actions without prior notice to suspects when evidence links the assets to serious crimes. In cases where assets are demonstrably tied to illegal activity, courts may approve their provisional sale before a final conviction, with the funds allocated to federal public security efforts such as police equipment, intelligence operations, and officer training. Custody of seized items falls to public authorities, addressing past challenges in managing volatile digital...