In connection with a money laundering probe, six cryptocurrency exchanges' operations have been under scrutiny since last Thursday by Brazilian law officials.
The nation's officials claim that both people and businesses might use digital currency to legitimate illegal earnings and avoid paying taxes. Members of the Tax Administration and the Federal Police conducted the searches.
Police investigators blocked digital assets worth $238 million with the approval of the Sao Paulo criminal court.
Financial intelligence acquired information on the usage of cryptocurrencies for illegal purposes. It discovered that between 2017 and 2021, money that may have been used in shady transactions moved through the exchanges.
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The investigation's specifics have not yet been made public, and the police have not named the trades that were under their supervision.
Brazilian lawmakers have started debating a measure to control the cryptosphere. The Senate received the redacted paper for review in February.
The creation of a system to thwart the illegal usage of virtual assets will receive particular attention from the parliament.