The U.S. State Department has designated Brazil's Comando Vermelho and the PCC as "Specially Designated Global Terrorists."

CoinFeed reported on May 31 that the U.S. State Department announced it was designating 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. In March of this year, Brazil passed a new law allowing the confiscation of crypto assets to be used for public security expenditures. This move signifies Brazil's shift of crypto assets from potential reserve instruments to law enforcement resources, strengthening its crackdown on organized crime groups like PCC and CV, and upgrading the judicial system's ability to regulate and dispose of digital assets.