You can also read this news on BH NEWS: Brazilian Lawmakers Intensify Efforts to Combat Digital Scams In a decisive move against digital scam activities, Brazil’s Chamber of Deputies is advan
You can also read this news on BH NEWS: Brazilian Lawmakers Intensify Efforts to Combat Digital Scams
In a decisive move against digital scam activities, Brazil’s Chamber of Deputies is advancing a new legislative framework, now incorporating cryptocurrency fraud. The Finance and Taxation Committee has approved Bill 5819/2025, an initiative designed to empower authorities by enabling the freezing of suspected crypto assets and instituting harsher penalties, extending prison terms to a maximum of 10 years for electronic frauds.
The proposed legislation envisions toughened repercussions for scams perpetrated through platforms such as social media, telecommunication, and digital channels. It raises current imprisonment penalties from 4–8 years to 6–10 years, with added fines as punitive measures.
Judges under this framework could implement preventive strategies that involve freezing not just bank accounts but crypto wallets suspected in fraudulent dealings. Additional judicial capabilities include blocking access to real estate, preventing suspect-victim communications, and limiting social media and digital payments access during investigations.
The committee-approved bill grants judges the authority to freeze bank accounts and crypto wallets in the course of electronic fraud investigations, while also increasing prison terms to between 6 and 10 years.
If offenses lead to financial harm exceeding 100 times the minimum wage or when a suspect is likely to escape, the courts may order provisional detention. Organized criminal involvement amplifies the basic sentence by a third.
The Bill, presented by Deputy Coronel Chrisostomo and examined by rapporteur Kim Kataguiri, undergoes its first phase of legislative scrutiny in the Chamber of Deputies. It will next undergo assessment by the Constitution, Justice, and Citizenship Committee. Successful progression through these stages is followed by a plenary vote, Senate approval, and finally, presidential ratification.
Besides legislative action, Brazil is actively confronting crypto crimes through law enforcement efforts. In September 2025, the federal police launched “Operation Lusocoin,” targeting a sophisticated network accused of laundering 3 billion reals via digital currencies, shell corporations, and proprietary tokens.
The operation concluded with the detention of 11 individuals and asset seizures from 65 associated persons and entities, reflecting Brazil’s stringent stance on crimes linked to digital currencies. In 2022, joint forces from Brazilian police and US Homeland Security targeted Francisley Valdevino da Silva, a key figure in an international fraud scheme alleged to defraud $800 million from a global investor base.
Another significant incident witnessed the sentencing of three Braiscompany officials to a cumulative 170-year imprisonment for their involvement in defrauding 20,000 investors, incurring losses of 1.1 billion reais or $190 million.
Brazil’s legislative framework and law enforcement actions signify a robust approach to mitigating digital and cryptocurrency fraud, tackling financial crime with rigorous measures and international collaborations.
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