Svmuu reported that the U.S. Department of State announced the designation of two Brazilian organizations, Comando Vermelho (CV) and Primeiro Comando da Capital (PCC), as "Specially Designated Global Terrorists (SDGTs)." They plan to officially designate them as "Foreign Terrorist Organizations (FTOs)" starting June 5, 2026. These organizations have been accused of using digital currencies for money laundering, with PCC reportedly using Bitcoin mining as a cover for laundering funds.
Previously, Brazil passed a new law in March of this year allowing confiscated crypto assets to be used for public safety expenditures. This move marks Brazil's shift in viewing crypto assets from a potential reserve tool to law enforcement resources, strengthening efforts to combat crimes by PCC, CV, and other organizations, while advancing the judicial system's capabilities in regulating and disposing of digital assets.