Brazilian Appeal Court Narrows Freeze on Kiziloz's $527 Million in Assets

A Brazilian appeal court has handed Gurhan Kiziloz an important first win in his effort to unfreeze $527 million in assets tied to a tax dispute. The ruling narrows the freeze, which was initially too broad, and allows for a closer examination of each asset.

The decision shifts the case in favor of Kiziloz, who argues that any tax owed must be measured against the laws in place at the time of his activity. He ran 17 betting sites serving Brazilian users and sold crypto tokens when Brazil's rules were still being written.

The court will now separate assets with a direct link to Brazilian activity from those generated outside the country or held before Brazil put its modern betting and crypto rules in place. This could result in $213 million in USDT being released by October 2026, as well as additional funds of around $314 million.

The ruling has implications beyond Brazil, as it sets a precedent for stablecoin issuers to reconsider token restrictions when court rulings change. Kiziloz's team can now request that the affected wallets be reopened, potentially setting free assets worth $527 million in total.