PANews reported on May 31 that the U.S. State Department announced that it has designated two Brazilian organizations, Comando Vermelho (CV) and Primeiro Comando da Capital (PCC), as "Specially Designated Global Terrorists (SDGTs)" and plans to formally designate them as "Foreign Terrorist Organizations (FTOs)" starting June 5, 2026. They have been accused of using cryptocurrencies for money laundering, with PCC reportedly using Bitcoin mining as a cover for money laundering.

In March of this year, Brazil passed a new law that confiscated crypto assets will be used for public security expenditures. This move marks Brazil's shift of crypto assets from a potential reserve tool to a law enforcement resource, strengthening its crackdown on organized crime such as PCC and CV, while also upgrading the judicial system's ability to regulate and dispose of digital assets.