Brazil Passes Law to Use Seized Bitcoin, Crypto to Fund Public Security Measures
Brazil enacted the “Anti-Gang Law” to strengthen efforts against organized crime, authorizing authorities to seize digital assets from criminals. The law imposes harsher penalties on crime leaders and aims to financially cripple criminal organizations by enabling the seizure, freezing, and early sale of both physical and digital assets if there is sufficient evidence of serious crime. Proceeds from such assets may be allocated to public security funds. Judges hold discretion over asset custody, and official custody is required unless public authorities are unable to securely store assets. While the law does not name crypto specifically, it includes “digital or virtual assets” in its definition. The law is part of broader measures by the Brazilian government to address increasing criminal complexity and curb illegal use of cryptocurrencies.
