Brazil’s Superior Court of Justice has ruled that judges can now authorize the seizure of cryptocurrency assets from individuals defaulting on financial obligations. This decision underscores the country’s growing recognition of digital assets as legitimate financial instruments.
The unanimous ruling by the court’s Third Panel enables judges to notify cryptocurrency exchanges about their intent to confiscate a debtor’s holdings to settle outstanding debts.
This move equates crypto assets with traditional bank accounts, which Brazilian courts can already freeze or seize without prior notice to the account holder.
“While not legal tender, crypto assets can be used as a form of payment and a store of value,” stated a translated excerpt from the court’s official memo.
The ruling arose from a specific case presented by a creditor and was unanimously supported by all five judges on the panel.
