Brazil enacts new law to convert seized crypto into public funds

Brazilian President Luiz Inácio Lula da Silva signed Law No. 15,358, which gives judges the authority to freeze, seize, and forfeit crypto and other assets connected to criminal organizations.

The law, also known as the Legal Framework for Combating Organized Crime or the Raul Jungmann Law, allows courts to take these measures during investigations, even without a criminal conviction, and includes provisions to turn seized assets into public funds while blocking suspects from maintaining control over them.

“With this law, we have the chance to catch those responsible for the factions who live in luxury apartments and whom we call the crime magnates of this country. These people need to be arrested and punished so that we can truly overcome organized crime,” President of the Republic said in a statement.

What separates this law from conventional organized crime statutes

What sets this law apart from other organized crime legislation in the region is its focus on digital finance.

Article 9 gives judges the power to immediately block digital assets, Pix instant-payment transfers, and transactions on crypto exchanges, without notifying the accused, at the request of prosecutors or police.

Pix, launched by the Central Bank of Brazil, enables people and businesses to send or receive money 24/7, instantly, using just an email, phone number, or a unique code called a Pix key.

If the assets are clearly linked to illegal activity, they can be sold before a final conviction through an “extraordinary forfeiture” process. The proceeds are directed to federal and state security funds, effectively turning seized Bitcoin, stablecoins, and other tokens into resources for law enforcement.

The scale of Brazil’s crypto sector

Crypto is growing faster than traditional investments in Brazil, with roughly 6.5 million people actively investing in digital assets as of February 2026, according to Crystal Intelligence.

Stablecoins such as USDT and USDC dominate activity, comprising approximately 90% of total transaction volume, a pattern that authorities have long treated as an indicator of capital flight and money laundering.

Crypto in Brazil drives both digital and real-world crime. Organized criminal networks, scams, ransomware, and kidnappings collectively threaten national security and individual investors.

From $2.4 billion laundered by the PCC to $54 billion lost in 2024 scams, the ecosystem is under constant threat.

The 2026 legal framework enforces transparency, KYC/AML standards, cross-border reporting, and allows the provisional use of seized assets. Intelligence-led oversight is key to mitigating these complex financial crime risks.

Tougher penalties hit organized crime

The new legislation establishes a comprehensive legal framework to combat ultra-violent criminal organizations, paramilitary groups, and private militias. It creates two new crimes, including structured social domination and aiding structured social domination, with prison sentences ranging from 12 to 40 years.

In addition to expanding asset seizure and forfeiture powers, the law imposes stricter procedural timelines, allowing for judicial intervention in companies linked to criminal groups, and mandating maximum-security federal imprisonment for leaders.

The law also amends the Penal Code, Code of Criminal Procedure, and several other statutes to increase penalties for connected offenses.

                    **Disclosure:** This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.