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U.S. State Department Targets Brazilian Gangs Over Crypto Laundering Allegations

The U.S. State Department designated Comando Vermelho and Primeiro Comando da Capital as SDGTs (U.S. sanctions list for traffickers) and said Foreign Terrorist Organization designations are planned from June 5, 2026.

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Summary

The U.S. State Department designated Brazil’s Comando Vermelho and Primeiro Comando da Capital as SDGTs (U.S. sanctions list for traffickers), alleging the groups used digital currency for money laundering. According to the source, Primeiro Comando da Capital was also accused of using Bitcoin mining (computing process that secures Bitcoin) as a cover activity. Separately, Brazil passed a law in March directing seized crypto assets to public security spending, linking criminal asset recovery more directly to law enforcement funding.

Terms & Concepts
  • SDGT: Specially Designated Global Terrorist, a U.S. sanctions designation that blocks property and restricts dealings with listed entities.
  • Foreign Terrorist Organization: A U.S. legal designation for overseas groups that can trigger broader criminal and financial restrictions.
  • Bitcoin mining: The computing process that validates Bitcoin transactions and secures the network, sometimes requiring large energy and hardware resources.