Brazil has recently taken a significant step in its fight against organized crime by enacting Law No. 15,358. This law empowers judges to freeze, seize, and forfeit cryptocurrencies and other assets associated with criminal organizations. Known as the Legal Framework for Combating Organized Crime, or the Raul Jungmann Law, it allows these measures to be enacted even during investigations and without a prior conviction.
The law's main objective is to target individuals connected to organized crime, often leading luxurious lifestyles. It seeks to ensure that those who engage in such criminal activities are arrested and face appropriate penalties. This approach, particularly concerning digital finance, sets this legislation apart from other regional laws.
Under Article 9 of the law, judges can block digital assets, instant Pix transactions, and movements in crypto exchanges without notifying the suspects, at the request of law enforcement. This measure aims to streamline investigations and disrupt criminal financial activities more effectively.
The Pix payment system, introduced by Brazil's Central Bank, enables quick financial transactions using minimal details, making it popular among the populace. If assets are evidently linked to illegal activities, they may be sold through an accelerated forfeiture process, subsequently allocating the revenues to enhance federal and state security funds. This mechanism transforms seized cryptocurrencies, including Bitcoin and stablecoins, into financial resources for law enforcement agencies.
The legal landscape of Brazil's cryptocurrency sector is rapidly evolving, with around 6.5 million individuals investing in digital assets as of early 2026. Notably, stablecoins like USDT and USDC dominate the market, comprising around 90% of transaction volumes, which raises concerns regarding potential capital flight and money laundering.
Moreover, the criminal misuse of cryptocurrencies in Brazil is alarming, contributing to various crimes such as scams and ransomware attacks that threaten national security. The value of laundered money and losses due to scams illustrate the severity of the issue.
This new legislation also introduces two additional crimes related to organized crime, imposing hefty prison sentences of 12 to 40 years. It emphasizes strict procedural measures, faster judicial intervention in companies with ties to crime syndicates, and ensures that leaders of these organizations are placed in maximum-security federal facilities. By updating the Penal Code and related statutes, the law aims to enhance penalties for offenses associated with organized crime, paving the way for stronger law enforcement initiatives.