CriptoJud: obstacles faced in the tracing, seizure, liquidation, and custody of virtual assets

Abstract

This study examines the obstacles faced by the CriptoJud system in the tracing, seizure, custody, and liquidation of virtual assets within the context of the application of precautionary measures during criminal prosecution. Inspired by the SisbaJud model, CriptoJud seeks to provide greater speed and effectiveness to judicial decisions involving cryptoassets through integration with Virtual Asset Service Providers. However, its effectiveness remains limited by structural, technical, and regulatory constraints, such as the still incipient normative consolidation of the sector, the volatility of digital assets, and the inherent difficulties in tracing blockchain transactions. The research analyzes these challenges in light of the recent Brazilian regulatory framework, particularly Law No. 14,478/2022, which governs the provision of virtual asset services in Brazil, and proposes practical solutions, including regulatory improvement, technological integration, the strengthening of user identification mechanisms, and the expansion of international cooperation. To this end, the study adopts a bibliographic and documentary research methodology, based on specialized legislation and legal scholarship.