President Lula signed Law No. 15.358, directing digital assets confiscated from criminal organizations toward law enforcement funding.
Brazilian President Luiz Inácio Lula da Silva signed on March 25, 2026, Law No. 15.358, a package of reforms aimed at dismantling organized crime across the country. At the heart of the strategy are cryptocurrencies: digital assets confiscated during investigations will be able to fund the public security system, including the purchase of police equipment, intelligence operations, and officer training.
The law allows authorities to provisionally use seized digital assets before a final conviction, provided that such use is approved by a judge. This approach sets Brazil’s strategy apart from proposals put forward in other countries, where some cryptocurrency advocates have suggested turning confiscated funds into state value reserves. The government in Brasília instead chooses to deploy those funds directly in the fight against organizations such as PCC and Comando Vermelho.
On the judicial front, the legislation expands the powers of authorities: judges will now be able to freeze, block, or seize digital assets during investigations, including suspending access to exchanges, digital wallets, and online platforms. Once a final conviction is issued, individuals permanently lose access to the formal financial system and the digital asset ecosystem.
The law also introduces an aggravating criminal element: the use of encrypted messaging apps or privacy tools to conceal criminal activity is now considered a factor that increases potential penalties. The measure is part of Brazil’s broader effort to modernize the legal management of digital property and to adapt the judicial system to the challenges posed by organized crime in the digital age.
On the international front, the legislation enables inter-state cooperation for asset recovery and intelligence sharing. A national criminal database is also being established, integrating the financial structures of major known criminal groups — a tool designed to facilitate cross-border investigations and the tracking of illicit digital asset flows.
