Brazil targets crypto loot in amendment of cyber fraud laws - Cryptopolitan

* A Brazilian congressional committee approved legislation that would allow judges to freeze cryptocurrency held by digital fraud suspects. * It will also raise the maximum prison sentence for electronic fraud from 8 to 10 years. * The bill still requires approval from a second committee, both legislative chambers, and the president. **Brazil’s Chamber of Deputies is attempting to include cryptocurrency in the country’s anti-fraud enforcement toolkit.** A key committee in the Chamber of Deputies has voted to let judges freeze suspects’ crypto holdings and impose prison terms of up to 10 years for electronic fraud. The bill still needs to pass through several approval stages before it can be considered law. The official Chamber of Deputies news service announced that the Finance and Taxation Committee (CFT) has [approved Bill 5819/2025](https://www.camara.leg.br/noticias/1280950-comissao-aprova-penas-mais-duras-e-bloqueio-de-bens-para-crimes-de-fraude-eletronica), which was authored by Representative Coronel Chrisostomo and backed by committee rapporteur Kim Kataguiri. Under the new law, both the Penal Code and the Code of Criminal Procedure will raise the sentencing range for fraud committed through social media, phone, email, or other digital channels from the current four-to-eight-year window to six to 10 years. In cases where the victim’s losses exceed 100 minimum wages or where investigators can prove the perpetrator is a flight risk, the court can impose preventive detention. Brazil has been attempting to [curb the spread of crypto crime](https://www.cryptopolitan.com/brazil-busts-500m-crypto-laundering-ring/) not just through legislation, but also through on-the-ground operations. For instance, in September 2025, the Federal Police carried out [Operation Lusocoin](https://www.trmlabs.com/resources/blog/brazils-federal-police-dismantle-540-million-crypto-laundering-network-in-operation-lusocoin).