Brazil’s judiciary has authorized the use of non-fungible tokens (NFTs) to serve subpoenas to unidentified individuals in a high-profile crypto fraud case. The decision is tied to the bankruptcy case of BWA Brazil, a digital currency investment company accused of fraud involving 11,200 bitcoins, which are currently valued at approximately $900 million.
The ruling comes against the backdrop of a legal plea to halt the statute of limitations on claims related to crypto assets allegedly purchased using creditor funds. A court-appointed trustee overseeing BWA Brazil’s bankrupt estate requested permission to serve digital subpoenas via NFTs.
The tokens, containing legal documents backed by Brazil’s Public Prosecutor’s Office, would be transmitted to Bitcoin wallet addresses associated with the disputed transactions.
Court decision accepts the use of NFT subpoenas
In the ruling, the court doubled down on the need to protect the creditors, stating:
“Creditors who suffered multimillion-dollar losses cannot be further harmed by legislative delays in keeping up with technological innovation. Therefore, I authorize the court-appointed trustee to take all necessary actions to carry out notification of this interruptive protest [which pauses lawsuit deadlines] via electronic communication using NFTs.”
The measure is only meant to target people whose identities are unknown but whose Bitcoin blockchain activities can be tracked. The bankruptcy estate says that the 11,200 BTC were bought with money from BWA Brazil’s clients before the company went out of business. This means that the clients could be sued to get their money back.
Four crypto exchanges, including Bit Blue, Mercado Bitcoin, Brasiliex, and Bitcambio, have been instructed to notify wallet owners involved in the case by forwarding copies of the court’s ruling and the initial legal petition.
BWA Brazil: What’s happened so far
BWA Brazil was founded in 2017 by Paulo Roberto Ramos Bilibio as an investment firm offering Bitcoin exposure. It attracted customers with promises of fixed monthly returns of 5% on deposits, what economists coined as an unrealistic guarantee, given Bitcoin’s volatile nature.
The company collapsed in early 2020 after freezing withdrawals and filing for a Chapter 15 bankruptcy petition, leaving investors with an estimated R$300 million in losses (approximately $52.2 million). Authorities later identified BWA as one of Brazil’s largest alleged crypto pyramid schemes.
A Brazilian court let BWA go through judicial collection in July 2020. This is a process that helps companies pay back their debts. However, less than a year later, the court changed its mind and declared the firm bankrupt because there was no proof that it had tried to pay back customers.
Bilibio and his business associate, Jessica da Silva Farias, are facing charges for using client funds to buy Bitcoin before the company’s collapse. Still, both remain at large, and there have been no reported arrests or profound sightings.
Brazil tightens restrictions on crypto investments for pension funds
On Monday, in a separate financial policy decision outlined in CMN Resolution 5.202/2025, Brazil’s top financial authority imposed new restrictions on crypto investments for pension funds.
Local news publications reported that the National Monetary Council (CMN) has barred closed pension funds, known as Entidades Fechadas de Previdência Complementar (EFPCs), from investing in Bitcoin or other digital assets. The EFPCs manage retirement savings for unionized and corporate employees, traditionally investing in bonds and equities.
“The resolution also prohibits investments in virtual assets, considering their specific investment characteristics and associated risk,” a Ministry of Finance notice explained.
Yet, Brazilian citizens are seemingly not very concerned about crypto regulations. A survey conducted by Datafolha and Paradigma Education, commissioned by Hashdex and Coinbase, found that among more than 2,000 participants, virtual currencies ranked as Brazil’s fifth most popular investment option, with 16% of respondents holding digital assets.
It was placed behind traditional choices such as money stored at home (24%) and investment funds (19%) but outperformed assets like foreign currency, bonds, gold, and stocks. Savings accounts remained the most preferred investment tool, followed by real estate, which attracted 31% of respondents.
