Brazil committee backs bill to freeze crypto balances in online fraud cases

The proposal would let judges freeze crypto wallets and bank accounts, raise online fraud penalties, and move next to the Constitution, Justice, and Citizenship Committee before floor votes.

Summary

Brazil’s Chamber of Deputies Finance and Taxation Committee approved Bill 5819/2025, a proposal that would expand anti-fraud powers by allowing judges to freeze suspects’ crypto wallets and bank accounts and by increasing penalties for fraud carried out through digital channels. Authored by Representative Coronel Chrisostomo and backed by committee rapporteur Kim Kataguiri, the bill would raise the sentencing range for electronic fraud committed via social media, phone, email or other online means to six to 10 years from four to eight years, alongside fines. Courts would also be able to block access to real estate, bar contact with victims, and restrict a suspect’s use of social media and digital payment systems. In larger cases involving losses above 100 minimum wages or suspected flight risk, preventive detention could be ordered, while fraud involving a structured criminal organization would carry a one-third sentence increase. The proposal now heads to the Constitution, Justice, and Citizenship Committee and would still need approval by the full Chamber, the Senate, and the president before becoming law.

Terms & Concepts
  • crypto wallets: Digital tools or accounts used to store and transfer crypto assets
  • preventive detention: Pretrial custody imposed by a court before a final conviction in certain cases
  • structured criminal organization: An organized group engaged in coordinated criminal activity