Brazil Passes Law to Use Seized Criminal Digital Assets to Fund Public Security

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To help combat organized crime, Brazil has passed a new law allowing authorities to seize and repurpose criminal property, rights, and assets, including digital assets.

President Luiz Inacio Lula da Silva signed Law No. 15.358, also known as the Legal Framework for Combating Organized Crime Bill, into law. This means Brazilian courts have expanded powers to order the freezing, seizure, and liquidation of assets connected to criminal organizations, provided there is sufficient evidence of serious crime. These can be ordered prior to conviction without any notice.

Now, seized assets in Brazil may be sold to fund public security and initiatives to combat drug trafficking.

Brazil’s Minister of Justice and Public Security Wellington Lima said:

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.”

The law was submitted to congress in November 2025 as Brazil considered measures to crack down on organized crime, including paramilitary groups and drug trafficking networks, with the aim of disrupting their financial infrastructure. 

The law also introduces stricter penalties for groups that use threats or violence to control territory, disrupt public services, attack infrastructure, or intimidate civilians and authorities. It offers rewards of up to 5% of seized assets to individuals who help authorities locate criminal funds.