Crypto News: Brazil Passes Anti-Gang Law Enabling Crypto Seizures for Security

Key Insights

• Crypto News: Brazil’s Anti-Gang Law allows seizure and early liquidation of cryptocurrencies, funding national and state security.
• The legislation expands Brazil’s 2023 crypto framework, targeting organized crime’s digital assets after mining and laundering crackdowns.
• Early reactions show reduced scams through stronger enforcement, but fears grow over surveillance of private crypto holdings.

Brazil has taken a major step against organized crime. On March 24, 2026, President Luiz Inácio Lula da Silva signed Law No. 15.358, known as the Marco Legal do Combate ao Crime Organizado, or Anti-Gang Law.

The law was published in the Official Gazette on March 25. It gives judges new powers to seize, freeze, block, or forfeit assets linked to crime. This includes digital and virtual assets such as cryptocurrencies. The goal is to weaken gangs by cutting off their financial lifelines.

Expanded Judicial Powers

The Anti-Gang Law expands the authority of judges under Article 9. They can now order precautionary measures against movable and immovable property, rights, and values, including digital or virtual assets.

These measures apply when there is evidence that assets are proceeds of crime, tools used in crime, or intended for criminal purposes. Assets do not need to be used exclusively for illegal activity to be targeted.

Judges can also impose extraordinary forfeiture in clear cases of illicit origin. This can happen even without a final criminal conviction.

The law also prohibits individuals under investigation or conviction from using crypto exchanges, issuing credit or debit instruments, or making electronic transfers such as Pix. Access to related digital platforms can be blocked before trial. Convicted leaders face harsher penalties.

New crimes of “structured social domination” carry sentences of up to 40 years. Leaders can also face permanent bans from financial and crypto systems and restrictions on public contracts.

Provisional Use of Seized Assets

A key innovation of the law is the provisional use of seized property. Article 11 allows public security agencies to use forfeited assets, including crypto, immediately. This includes police re-equipment, training, and special operations.

Judicial approval is required. Proceeds from sales or liquidation go to the National Public Security Fund when investigated by the Federal Police. State funds receive proceeds from state-level cases. In joint operations, resources are split equally.

This approach is called “financial strangulation.” It aims to dismantle the economic backbone of organized crime groups such as the Primeiro Comando da Capital (PCC) and Comando Vermelho.

These gangs have increasingly used crypto for money laundering, illegal mining, and cross-border transfers.

Brazil’s government stresses that the law targets only assets tied to crime. Safeguards include rapid return of funds with interest if a person is acquitted and no permanent forfeiture is declared.

Reactions and Global Impact

Brazil’s move builds on its 2023 crypto regulatory framework, Law 14.790. It marks a sharp escalation in enforcement tools. Recent operations have already seized billions of reais in illicit assets, showing crypto’s role in organized crime.

Crypto industry observers have mixed views. Supporters say the law strengthens Brazil’s position as a major global crypto market. They argue it reduces scams and money laundering, which could boost legitimate adoption.

Critics warn of risks such as expanded government surveillance, possible overreach affecting innocent users, and challenges in custody and liquidation of volatile digital assets. The law rejects using seized crypto as a sovereign reserve. Instead, assets are directed to public security needs.

The legislation also includes provisions for international cooperation on asset recovery. It creates a national criminal database to map financial networks of organized groups.

It integrates with existing anti-money laundering rules enforced by the Financial Activities Control Council (Coaf) and the Central Bank.

Brazil faces ongoing challenges from gang violence and militias. The Anti-Gang Law stands as one of the most aggressive global attempts to use seized crypto directly against crime.

Legal experts and the crypto sector will closely watch how courts balance enforcement with due process and property rights.

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