Eike Batista must comply with CVM requirements regarding the $EIKE token

The regulatory developments in Brazil’s cryptocurrency sector have reached a new milestone with the decisive intervention of the Securities and Exchange Commission (CVM). Eike Batista, the entrepreneur behind this ambitious project, is now facing significant restrictions imposed by Brazilian authorities.

When the CVM Ends the Public Offering in Brazil

The Securities and Exchange Commission recently made a radical decision by ordering the immediate halt of any securities offering related to the $EIKE token to Brazilian residents. This warning is based on CVM Deliberation 898, which provides the legal framework for this action. Authorities identified activities deemed irregular involving this real-world sustainability token (RWS), officially launched in February 2026.

This restriction extends to several entities associated with the project. Beyond Eike Batista himself, the ban also applies to Luis Claudio Silva Rubio, Sizuo Matsuoka, and various holding structures: EBX Digital LLC, BRXE Global Holdings LLC, BRXE Brasil Holdings Ltda, BRXE USA Holdings LLC, and BRXE Dubai Holdings LLC.

A Substantial Daily Penalty for Non-Compliance

The financial consequences of this decision are particularly deterrent. The regulatory authority has set a daily fine of R$100,000 (Brazilian reais) for any violation of these directives. This sanction applies to all mentioned participants, their associates, officers, directors, and agents who breach the ban.

According to CVM’s interpretation, contracts related to $EIKE fall under the legal concept of securities. This legal qualification alone justifies regulatory intervention and the imposition of these substantial penalties.

Geoblocking as an International Compliance Solution

Reacting swiftly to CVM’s requirements, EBX Digital Green has immediately implemented a technical solution: geoblocking. Access to the token’s website is now unavailable from IP addresses located within Brazil.

This technical measure allows the project to continue its international operations while complying with Brazilian directives. Eike’s press service clarified that $EIKE “is not intended for sale, distribution, or marketing within Brazil.” The statement also notes that this token remains in the international pre-sale phase exclusively, inherently excluding Brazilian residents.

EBX Digital Green’s Position Regarding the Decision

Despite disagreeing with the CVM’s stance, EBX Digital Green has decided not to challenge the regulatory order. This unappealable acceptance demonstrates a commitment to formal compliance, even though the company regrets that Brazilian investors are deprived of this investment opportunity.

The official statement criticizes the Brazilian regulatory framework for digital assets, deeming it outdated compared to international standards. Meanwhile, in the United States, access to the $EIKE offering remains unrestricted and freely available.

The project affirms that “EBX Digital Green has complied with CVM’s request by implementing geoblocking of the webpage for IP addresses located in Brazil.” The company also emphasizes its overall compliance “with applicable international regulations” and its ability to “restrict access according to local laws and directives of each country.”

Recommended Steps for Investors

The CVM urges concerned investors or anyone receiving proposals from the mentioned participants to report the situation to the Citizens Assistance Service (SAC). Providing detailed information about the offer and the involved individuals facilitates swift regulatory intervention in cases of non-compliance.

This action by the CVM illustrates the strengthening of regulatory controls over token projects in major jurisdictions, posing significant challenges for Eike Batista and his business partners.