Brazilian Court Authorizes Crypto Asset Seizures
Brazil’s Superior Court of Justice (STJ) has unanimously ruled that judges can now notify crypto exchanges of their intention to seize a debtor’s crypto assets for debt repayment, as reported by local media. This decision, made by the court’s Third Panel, stems from a case initiated by a creditor seeking repayment.
In a statement on its website, the STJ noted, “While not legal tender, crypto assets can serve as a form of payment and a store of value,” confirming the ruling.
Under Brazilian law, judges have the authority to freeze bank accounts and authorize fund withdrawals without prior notification to the debtor. With this new ruling, crypto assets will also be treated in this manner, allowing them to be frozen or confiscated to fulfill legal obligations.
Minister Ricardo Villas Bôas Cueva, one of the five panel members, acknowledged that while Brazil lacks comprehensive cryptocurrency regulation, several legislative proposals already define them as a “digital representation of value.”
