
A new law passed in Brazil designed to bolster the fight against organized crime will allow authorities to seize digital assets from criminals and potentially use them in the public’s interest.
The “Anti-Gang Law” was signed into law by Brazilian President Luiz Inácio Lula da Silva on Tuesday, creating much harsher penalties for crime leaders while providing authorities the means “for the financial, logistical, and material strangulation” of organized crime entities.
“The law represents progress in combating organized crime, by incorporating mechanisms for financial strangulation and strengthening the state's capacity to respond to the growing complexity of these criminal structures,” said Brazil’s Minister of Justice and Public Security Wellington Lima, in a statement.
“The focus is on reaching their highest levels, with more effective instruments and coordinated action,” he added.
While the bill does not specifically mention any crypto assets by name, it allows judges to order precautionary measures like “seizure, attachment, blocking or freezing of movable and immovable property, rights and assets, including digital or virtual assets” in cases where there is sufficient evidence of a serious crime as defined in the law.
In certain cases, the judge may also be able to authorize the early sale of assets, with proceeds then flowing to public security funds.
Custody of seized assets based on precautionary measures will fall to the public authorities, except in cases where a judge determines “the material impossibility or technical inadequacy of custody by the public authorities is demonstrated.”
In other jurisdictions, authorities have had difficulty in maintaining custody of crypto assets gathered from investigations. For example, law enforcement in South Korea didn’t adhere to crypto custody guidelines, and lost access to $1.4 million in Bitcoin.
Later, representatives for the National Tax Service in South Korea posted photos of seed phrases, the 12-word phrases that unlock a crypto wallet’s private key, allowing an unknown individual to grab $4.8 million in crypto tokens at face value—before ultimately returning them.
The newly passed law in Brazil was sent to congress in November as the nation’s government and central bank introduced proposals to crack down on crime and illegal Bitcoin or stablecoin use. The nation also clamped down on an illegal Bitcoin mining operation in September.
LATEST POSTS
- 1
Lilly becomes first healthcare firm to join trillion-dollar club, Wall Street reacts - 2
Foods with healthy-sounding buzzwords could be hiding added sugar in plain sight - 3
'Euphoria' Season 3 trailer includes Eric Dane's final appearance, Jacob Elordi and Sydney Sweeney at the altar and Zendaya's 'Breaking Bad' era - 4
New movies to watch this weekend: See 'The Running Man' in theaters, rent 'One Battle After Another,' stream 'Nobody 2' on Peacock - 5
Who was Haytham Ali Tabatabai, Hezbollah's military leader killed by Israel?
Are your hormones imbalanced? Doctors explain how to know if you need testing
Sea Ice Hits New Low in Hottest Year on Record for the Arctic
Computerized Strengthening d: A Survey of \Upgrading Efficiency\ Programming Application
JW Marriott Tokyo: an elegant retreat amid whirlwind of the city
What you need to know about desalination, a growing source of drinking water
2025 among world's three hottest years on record, WMO says
Toyota’s Next Big Sports Car Might Apparently Be a Turbocharged All-Paw Beast
From Overpowered to Coordinated: Individual Accounts of Cleaning up
Some Americans say they'll go without health insurance as ACA rates spike













