Brazil Expands Crypto Seizure Powers to Fund Security Operations
Brazil's President Luiz Inácio Lula da Silva has enacted Law 15.358, granting authorities sweeping new powers to redirect seized cryptocurrency assets toward public security initiatives. The legislation enables judges to freeze wallets, block exchange access, and halt digital transfers during criminal investigations—even before conviction in certain cases.
The law specifically targets militias, organized crime groups, and tools used to conceal illicit crypto transactions. Provisional use of seized assets is now permitted with judicial approval, earmarked for police operations, intelligence gathering, and officer training programs.
Cross-border asset recovery protocols have also been strengthened under the statute, alongside enhanced coordination of criminal databases. This move mirrors global trends of regulatory crackdowns on crypto's illicit use while creating fiscal incentives for enforcement agencies.
