What this means for crypto projects targeting Brazilian investors
Brazil’s financial authority, the CVM (Comissão de Valores Mobiliários), has officially ordered the immediate suspension of the $EIKE token offering, a cryptocurrency linked to entrepreneur Eike Batista.
The decision, announced on April 3, 2025, states that the token was being offered as part of an unregistered securities operation, targeting residents in Brazil through Batista’s website and promotional content.
“The public offering of securities to Brazilian residents must cease immediately. Failure to comply will result in a daily fine of R$100,000 (~USD $20,000),” the CVM stated.
What Triggered the Suspension?
According to the CVM, Batista and other parties were involved in promoting digital asset investment opportunities (tokens) via online platforms. The structure and communication of the offer, the regulator claims, qualify as collective investment contracts — a category that falls under securities law in Brazil.
In response, representatives for Eike Batista told Reuters that the token is still in an international pre-sale phase, not intended for Brazilian residents, and not being marketed in any jurisdiction where such offers are illegal.
Why This Matters
This case sets a clear precedent:
Even crypto offerings launched abroad can face enforcement if they’re promoted to Brazilian investors.
The CVM is signaling a tighter grip on any digital asset that crosses legal definitions of “securities” — regardless of where the token is registered or who’s backing it.
Final Takeaway
The $EIKE case isn’t just about a single token. It reflects the growing regulatory scrutiny over how crypto assets are marketed and distributed, especially in emerging markets like Brazil.
For crypto startups:
Regulatory compliance is no longer optional — it’s a launch requirement.
For investors:
Fame doesn’t guarantee legitimacy. Always verify the legal framework of any token offering.