The U.S. State Department has designated two Brazilian organizations, the Red Command (Comando Vermelho, CV) and the First Capital Command (Primeiro Comando da Capital, PCC), as Specially Designated Global Terrorists (SDGTs). According to Odaily, these groups are set to be officially recognized as Foreign Terrorist Organizations (FTOs) starting June 5, 2026. Both groups have been accused of using digital currencies for money laundering, with reports indicating that PCC has used Bitcoin mining as a cover for such activities.

Earlier this year, Brazil enacted a new law in March allowing the confiscation of crypto assets to be used for public safety expenditures. This move signifies Brazil's shift from viewing crypto assets as potential reserve tools to utilizing them as law enforcement resources. The legislation aims to strengthen efforts against criminal organizations like PCC and CV, while also enhancing the judicial system's ability to regulate and manage digital assets.