
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
5 Different ways Macintosh is Prepared to Overwhelm Gaming, Even Against Windows - 2
The most effective method to Boost Benefits in Gold Speculation: Master Techniques and Tips - 3
Exclusive-Head of Pemex's production arm to step down in coming days, sources say - 4
SF Chinatown's historic Empress of China building being revived into cultural campus - 5
'Israel has the right to continue its attacks,' Lebanese Foreign Minister announces
Giant ‘toothed’ birds flew over Antarctica 40 million to 50 million years ago
Cocoa Prices Undercut Amid the Prospects of Abundant Supplies
An Extended period of Voyaging Carefully: the World with Reason
More Than 110 New Species Discovered In Deep Waters Off Australia
The Solution to Ecological Protection: Saving Nature for People in the future
Tatiana Schlossberg, JFK's granddaughter, dies at 35 after terminal cancer diagnosis
Novo Nordisk cuts Wegovy price in South Africa for a second time
Kiev declares energy emergency after Russian attacks amid winter cold
An ex-FBI agent analyzes what we learned from Savannah Guthrie's 'Today' show interview amid the search for her mother Nancy













