Brazil Passes New Law to Seize Crypto Linked to Organized Crime

Highlights:

• Brazil passed a new anti-crime law that expands crypto seizure and freezing powers.
• Judges can block transfers, limit exchange access, and manage seized digital assets faster.
• The law increases prison terms and strengthens action against violent criminal gangs.

Brazil has passed a new anti-organized-crime law that could affect the crypto market. President Luiz Inácio Lula da Silva signed Law No. 15,358 on 24 March, and Brazil published it in the Official Gazette on 25 March. The law strengthens the country’s fight against criminal groups and gives authorities broader powers to freeze, manage, and permanently seize assets linked to organized crime.

Judges Get More Power to Crack Down on Organized Crime

The law, also known as the Legal Framework for Combating Organized Crime or the Raul Jungmann Law, gives judges much broader authority during investigations and court cases. When there is enough evidence, courts can freeze houses, land, vehicles, money, legal rights, and even digital or virtual assets. These powers apply not only to assets inside Brazil but also to those held abroad. 

🇧🇷JUST IN: BRAZIL PASSES LAW REDIRECTING SEIZED CRYPTO FOR PUBLIC-SECURITY WAR CHEST

Brazilian President Lula has signed Law No. 15.358, allowing crypto confiscated from criminal organizations to be channeled directly into police equipment, intelligence operations, and officer… pic.twitter.com/ZSLyVT8tl7

— BSCN (@BSCNews) March 26, 2026

It also allows judges to cut off tools that criminal groups may use to operate. They can block access to financial systems, payment services, digital platforms, and even electronic communication networks connected to these groups. On top of that, the law allows limits on electronic transfers, including Pix, Brazil’s instant payment system. It also stops crypto exchange activity unless a judge gives clear permission.

The President of the Republic said:

“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.”

Brazilian Authorities Get Power to Sell Seized Assets Before Trials End

The law also changes what happens to seized assets before a case ends. Once authorities seize property, the judge must quickly decide the next step. The judge can approve an early sale or appoint an administrator. This is important for digital assets because their prices can change quickly. As a result, seized crypto may not remain untouched while a court case moves forward.

After a final conviction, the law becomes even stricter. It can turn certain precautionary freezes into permanent forfeiture when authorities prove the assets came from crime or were meant for illegal use. The government can then send the money to the National Public Security Fund or to state and district public-security funds. In some cases, security agencies may also use seized assets temporarily for police equipment, training, and special operations, but only with judicial approval.

New Law Sets Strict Prison Terms for Violent Gangs

The law said violent criminal gangs can be made up of three or more people who use violence, threats, or fear to control areas, scare communities, or attack important services. People involved in the main crimes can face 20 to 40 years in prison, while those who help such gangs can face 12 to 20 years.

The law also helps the government move faster against such groups. It allows broader use of preventive detention, makes bail and early release harder to get, and lets police, prosecutors, and intelligence agencies work together more quickly.