Brazil has passed a law, signed by President Luiz Inácio Lula da Silva, that allows authorities to freeze, seize, and liquidate digital assets, including cryptocurrencies, tied to serious crimes. Law No. 15.358 equips law enforcement with unprecedented powers to combat organized crime by redirecting seized crypto to public security funding.
The new legislation enables judges to order precautionary actions such as freezing wallets, blocking exchange accounts, and restricting access to online platforms. It also allows courts to approve early liquidation of seized crypto before a final conviction, streamlining the process of converting illicit gains into resources for public safety. These recovered funds will be used to bolster police operations, intelligence work, and officer training.
This law expands enforcement tools by allowing authorities to suspend access to exchanges, digital wallets, and financial platforms during investigations. Permanent restrictions can be applied after conviction. It also strengthens international cooperation, allowing Brazil to work with foreign agencies to track and recover digital assets across borders. The law specifically targets ultraviolent criminal organizations, paramilitary groups, and private militias, broadening the definition of crimes and significantly increasing penalties for acts such as controlling territories or obstructing police.
The move to redirect seized crypto comes as Brazil debates broader crypto policies. In August 2025, lawmakers discussed creating a national Bitcoin reserve. Instead of building a reserve, the government chose to redirect seized crypto funds to law enforcement. Finance Minister Dario Durigan has indicated that changes to Brazil's crypto tax policy will be delayed until after the country's presidential election in October.
