Crypto Assets Can Be Legally Seized in Brazil

Brazil's Superior Court of Justice has officially authorized judges to seize crypto assets in debt collection cases. The decision was unanimously approved by the court’s Third Panel, according to a statement published on the institution’s website.

Based on the ruling, judges can now notify crypto trading platforms to request information about a debtor’s account and initiate the seizure of funds required to repay creditors.

Although cryptocurrencies are not considered legal tender in Brazil, the court clarified that they can be used both as a means of payment and as a store of value. This ruling expands the existing legal framework, which already allows the freezing of bank accounts for debt enforcement.

Judge Ricardo Villas Bôas Cueva, a member of the five-person panel, noted that although there is no clear regulatory framework for crypto assets in Brazil, several legislative proposals already recognize these assets as “digital representations of value.”

The decision sets an important precedent in incorporating crypto assets into Brazil’s legal system for debt enforcement procedures.