Irish criminal groups are increasingly using rented private vaults to store cryptocurrency seed phrases, according to reports tied to enforcement activity by Ireland's Criminal Assets Bureau (CAB). The shift comes as CAB steps up crypto-related seizures in a crackdown estimated at about €360 million in holdings linked to organized crime. Rather than leaving seed phrases on phones, computers or cloud accounts, gangs are said to write the alphanumeric recovery keys down and lock them inside third-party storage facilities. A seed phrase acts as the master credential for a digital wallet: anyone with it can move or spend the funds, regardless of who is listed as the wallet's owner. Offline storage is widely recommended as a security best practice for legitimate users. For criminals, the reported appeal is also tactical. A phrase stored on paper inside a locked box sits outside the reach of common digital forensics methods used to locate and recover illicit crypto. Unlike cloud-based data, it cannot be remotely accessed, copied, or obtained from a service provider. The trend underscores how criminal enterprises adapt as blockchain analytics and policing capabilities improve. While authorities in many jurisdictions have become more effective at tracking on-chain flows, groups seeking to protect proceeds are separating the public transaction trail from the physical means of control: the seed phrase. CAB has long pursued traditional assets tied to organized crime, including cash, property and vehicles. Its move deeper into crypto seizures reflects how digital assets are now a routine part of what gangs attempt to safeguard. CAB also reportedly seized its first Bitcoin wallet as part of the wider action. If the €360 million figure holds as investigations develop, it would mark a meaningful expansion of the agency's crypto-focused enforcement. The reported use of rented vaults may draw attention to the private storage industry, which typically does not screen what customers store. Operators offering safe deposit boxes and private vault services could face scrutiny over whether their facilities are, even unintentionally, helping conceal criminal proceeds. Market impact For the crypto sector, the episode highlights the gap between blockchain transparency and real-world recovery. Public ledgers can show where funds moved, but asset recovery still hinges on access to the private keys or seed phrases that control those wallets. Regulators and law enforcement may push for closer cooperation with vault and safe-deposit providers, echoing anti-money laundering expectations already applied to banks and crypto exchanges. Any tightening of oversight could reshape how private storage services operate, especially in jurisdictions pursuing aggressive crypto recovery programs such as Ireland's CAB. As tracing tools become more sophisticated, criminals appear to be shifting the weakest link—seed phrase custody—back into the physical world. Ireland's crackdown suggests enforcement strategies are evolving in parallel. FAQ What is a crypto seed phrase? A seed phrase is a set of words or characters that provides full access to a crypto wallet. Anyone who has it can control the funds, making secure storage essential. What did CAB seize? CAB reportedly seized its first Bitcoin wallet as part of a crackdown on crypto assets linked to organized crime, valued at roughly €360 million. Why use physical vaults? Keeping seed phrases off internet-connected devices can make them harder for investigators to find using digital forensics. Does this make crypto untraceable? No. Transactions on public blockchains remain visible, but recovering assets depends on gaining access to the private keys controlling them. Originally reported by AltcoinGordon, written by Grace Mitchell. Republished with permission. View the original on AltcoinGordon →

Brazil's cryptocurrency market is projected to reach BRL 505.5 billion (about $98.7 billion) in transaction volume in 2025, more than five times the BRL 94.9 billion recorded in 2020, ME News reported on Sept. 8 (UTC+8). Data from Brazil's Federal Revenue Service show corporate-related transactions totaling BRL 497 billion, representing 98.3% of the reported volume, with individual investors accounting for the remainder. Major financial institutions have been expanding crypto access. Itaú, Brazil's largest asset management bank, offers 15 crypto assets via its investment app, including Bitcoin, Ethereum and the U.S. dollar-pegged stablecoin USDC. Fintech Nubank lists 28 crypto assets. Banco do Brasil, which began enabling direct Bitcoin and Ethereum trading in January, has logged more than BRL 11 million in transaction volume so far. Brazilian Central Bank filings through March 2026 indicate banks do not hold virtual assets on their own balance sheets, though they are allowed to provide custody and processing services for clients. Since 2025, Itaú, Bradesco, Santander, Banco do Brasil and Nubank have expanded crypto-related services. On the regulatory front, Brazil enacted its Virtual Assets Legal Framework in 2022 and issued three regulatory resolutions in November 2025. The rules require institutions offering crypto trading, custody or transfer services to obtain licenses, meet minimum capital thresholds and segregate client accounts, with an Oct. 30, 2026 compliance deadline. Separately, Banco Safra issued the U.S. dollar-pegged stablecoin Safra Dólar in September 2025, with the bank self-custodying the token. (Source: ODAILY)

Brazil's push to regulate crypto is reshaping how consumers access digital assets. Itaú, Nubank and Banco do Brasil now offer crypto trading to millions of retail clients, positioning their in-app token lineups closer to what dedicated exchanges provide. The rollout follows a new regulatory regime from the Brazilian Central Bank (BCB). Resolutions approved in late 2025 created a formal framework for virtual asset service providers, effective February 2026, introducing clearer compliance standards that have encouraged established institutions to scale up. Itaú, the country's largest private bank, began expanding its retail crypto menu in 2025 with 15 tokens, including Bitcoin and ether. Banco do Brasil, the state-controlled lender, launched direct investment access to Bitcoin and ether in January 2026. Both are distributing crypto through existing brokerage channels, treating it as another investable asset class. Nubank has moved faster than peers. Its platform now supports 28 assets, with four tokens added in May 2026. The digital bank says more than 7 million users trade crypto through its app. Across all three, the operating model is designed to limit balance-sheet exposure. The banks do not hold crypto on their own books, acting instead as custodians and intermediaries that provide client access without taking on the assets' price volatility. Each labels crypto as a high-risk investment and requires risk disclosures before customers can trade. Under the BCB's framework, providers must meet authorization and capital adequacy requirements, segregate client assets, and maintain proof of reserves. For Brazil's large banks, these controls align with familiar compliance processes, helping incumbents such as Itaú and Banco do Brasil enter the market more readily.

Brazil's major banks are widening access to cryptocurrencies for retail customers as the country's regulatory regime comes into sharper focus, Folha de S.Paulo reported. Itaú, Brazil's largest bank by assets under management, now lists 15 cryptocurrencies on its investment app, including Bitcoin, Ethereum and the U.S. dollar stablecoin USDC. Nubank, the country's biggest fintech, offers 28 tokens. Banco do Brasil, Brazil's most profitable state-owned lender, launched direct purchases of Bitcoin and Ethereum in January and has already processed more than R$11 million (about $2.1 million) in transactions. Customer crypto trading activity is not reflected on banks' own balance sheets. A Central Bank document dated March 2026 indicates Brazilian banks hold zero virtual assets on their books. Over the past year, Itaú, Bradesco, Santander, Banco do Brasil and Nubank have all expanded crypto services amid record growth in Brazil's digital-asset market. Data from the Federal Revenue Service (Receita Federal) show Brazilians transferred R$505.5 billion (around $98.7 billion) via cryptocurrencies in 2025, more than five times the 2020 level. Corporate flows represented 98.3% of total volume. The push by banks comes alongside new rules for the sector. Brazil passed the Virtual Assets Legal Framework in 2022, giving the Central Bank regulatory authority. In November 2025, three resolutions set licensing requirements for institutions that allow customers to trade, hold or transfer cryptocurrencies, including minimum capital thresholds and segregation of client accounts. The compliance deadline is October 30, 2026.

Brazil's cryptocurrency market recorded trading volume of R$505.5 billion (about $98.7 billion) in 2025, more than five times the R$94.9 billion logged in 2020, according to Odaily Planet Daily citing figures from Brazil's Federal Revenue Service. Corporate-related transactions totaled R$497 billion, representing 98.3% of the reported volume, with individual investors accounting for the balance. Large financial institutions have continued to expand crypto access. Itaú, Brazil's biggest bank by assets, offers 15 crypto assets in its investment app, including Bitcoin, Ethereum and the USD-pegged stablecoin USDC. Fintech Nubank lists 28 crypto assets. Banco do Brasil has generated more than BRL 11 million in trading volume since enabling direct Bitcoin and Ethereum trading in January. Central Bank filing data as of March 2026 indicates Brazilian banks hold no proprietary positions in virtual assets, though they may custody and process crypto assets on behalf of clients. Since 2025, Itaú, Bradesco, Santander, Banco do Brasil and Nubank have expanded their crypto services. Brazil passed the Virtual Assets Legal Framework in 2022. In November 2025, the country issued three regulatory resolutions requiring institutions offering cryptocurrency trading, custody or transfer services to obtain licenses, meet minimum capital requirements and segregate client accounts. The compliance deadline is October 30, 2026. Banco Safra launched the USD-pegged stablecoin Safra Dólar in September 2025, with the bank providing self-custody. (Decrypt)

Brazilian Banks Broaden Crypto Services as Regulatory Framework Takes Shape

Polish prosecutors have widened their investigation into crypto exchange ZondaCrypto, filing charges against an additional suspect identified as Romana Ż. Authorities allege the suspect took part in an organized criminal group and helped misappropriate user funds. Poland's National Prosecutor's Office said it has asked the Katowice-Wschód District Court to place Romana Ż. in pretrial detention, citing risks the suspect could flee or obstruct the proceedings. The announcement did not specify whether the court has ruled on the request. Prosecutors allege Romana Ż., acting with others, misappropriated 7.8 million zlotys (about $2.1 million) entrusted to the exchange. The filing also describes alleged unauthorized changes to computer records and interference with how ZondaCrypto processed and transmitted exchange data. The National Prosecutor's Office said the suspect was detained on Sept. 5, questioned afterward, denied wrongdoing, and provided a statement. The latest development follows earlier arrests in the same case. Prosecutors previously reported that three other individuals were detained on Sept. 2 and later charged with allegations including money laundering, misappropriation of company assets, and participation in an organized criminal group. Court records referenced in the source indicate those three suspects were ordered held in pretrial detention for up to three months. Loss estimates cited in earlier reporting are substantially larger than the amount tied to the newly charged suspect. Cointelegraph previously reported prosecutors estimated losses linked to ZondaCrypto at no less than 350 million zlotys, indicating different defendants may be linked to separate portions of a broader alleged total. The investigation has also expanded in scope. Prior coverage said the probe was merged in July with a separate investigation into the 2022 disappearance of Sylwester Suszek, the founder of BitBay, later renamed ZondaCrypto. The matter is also moving through insolvency proceedings. The source notes that ZondaCrypto's Estonian operator, BB Trade Estonia, was declared bankrupt in August, and that a first creditors' meeting is scheduled for Sept. 17. What to watch next includes the Katowice-Wschód District Court's decision on the pretrial detention request for Romana Ż., alongside the Sept. 17 creditors' meeting for BB Trade Estonia as the criminal case continues to develop.

Sen. Cynthia Lummis (@SenLummis) warned that if the #CLARITY Act does not advance in the current #Congress, the next realistic window for sweeping U.S. crypto market structure legislation may not come until 2030. Full video below.

CoinDesk reports that the U.S. Crypto Market Structure Act, known as CLARITY, is losing momentum in Congress. Former federal prosecutor Renato Mariotti said that after recent conversations with lawmakers and congressional staff in Washington, he believes the bill has "clearly" shed support. He added that several members of Congress or their aides told him directly the CLARITY bill "is dead," deepening doubts about its path forward. The CLARITY Act was designed to set clearer regulatory lines and rules for the U.S. cryptocurrency market, but disputes on key provisions have slowed progress. A Senate vote is scheduled for September 15. While sentiment has turned more pessimistic, the legislation has not been formally withdrawn. The Senate still plans a procedural cloture vote on September 15, which will decide whether the bill can advance. Time is also tightening in the House. Two full weeks originally slated for September have been canceled, leaving lawmakers just 14 effective working days before the October election recess. If the Senate does move the bill ahead, the House would still need to debate it, reconcile the text, and hold a final vote, increasing the time crunch. Senator Cynthia Lummis has urged Congress to act before the session ends. Even as Congress stalls, regulators are pressing forward. The U.S. Securities and Exchange Commission is moving ahead with its own crypto regulatory framework, and the U.S. Commodity Futures Trading Commission is developing rules tied to crypto assets and prediction markets. Industry confidence has also faded. Bitwise CIO Matt Hougan called the bill a "zombie," arguing that while it has not been officially killed, its progress is likely to remain delayed. On Polymarket, contracts tied to the CLARITY bill imply a 13% to 18% chance it becomes law by 2026, down sharply from above 80% earlier this year.