Brazilian President Luiz Inácio Lula da Silva signed Law No. 15.358 on March 25, 2026 — a sweeping "Marco Legal do Combate ao Crime Organizado" that puts seized cryptocurrency directly to work against the gangs it came from.

Seized Crypto Funds Police Operations

Under the new law, cryptoassets confiscated from criminal organizations can be deployed into Brazil's public security system — funding police equipment, intelligence operations, and officer training. Courts can authorize provisional use before a final conviction.

Rather than holding seized crypto as a state reserve, the government is using it as an operational tool against groups like the PCC and Comando Vermelho.

Expanded Seizure Powers

The legislation significantly expands judicial authority over digital assets. Judges can now freeze or seize access to exchanges, digital wallets, and online platforms during active investigations. Convicted individuals permanently lose access to formal financial and crypto systems.

Using encrypted messaging or privacy tools to conceal criminal activity is defined as an aggravating factor, increasing potential sentences.

International Cooperation

The law enables cross-border asset recovery and intelligence sharing, and creates a national criminal database mapping the financial structures of known criminal organizations.

Brazil previously proposed selling seized Bitcoin to undercut gang financing. This law goes further, institutionalizing crypto seizure as a standing law enforcement funding mechanism — a model other countries dealing with crypto-enabled organized crime may be watching closely.