Claiming Cryptocurrency Frozen and Seized for Forfeiture
In the volatile world of digital assets, cryptocurrency seizures by federal agencies like the FBI, DEA, or Secret Service have become increasingly common. If your crypto wallet was frozen, your address blacklisted, or you received a notification from your exchange directing you to contact a specific agency or agent, you may be dealing with a government seizure of your cryptocurrency for forfeiture.
Other the government is required to send you a “personal notice,” they often find ways around that rule. The owner of the cryptocurrency might never receive a personal “notice of seizure” or locate the published notice on the forfeiture.gov website.
Missing the deadline to file the claim usually results in the permanent loss of the asset.
The first rule of civil asset forfeiture is: Do Not Miss a Deadline.
As a cryptocurrency attorney focused on asset forfeiture cases, I’ve helped numerous clients navigate these complex situations. This guide draws from real-world cases and current regulations to help you understand your options.
Over the years, civil asset forfeiture cases have become a bigger part of my practice. In the past few years, that focus has shifted to seized cryptocurrency.
Few attorneys focus on civil asset forfeiture. Even fewer understand the unique issues surrounding the seizure of cryptocurrency. For these reasons, the attorneys at Sammis Law Firm are uniquely qualified to handle these cases.
We’ve taken forfeiture cases to jury trial and won. We’ve gotten the seizing agency to pay our attorney fees after we “substantially prevail.” We taken complicated forfeiture cases up on appeal, including an appeal to the Eleventh Circuit Court of Appeals in 2025 which resulted in the reversal of a decision by a federal judge who refused to award our client attorney fees.
Whether your funds were seized due to suspected involvement in money laundering, fraud, or other investigations, acting quickly is crucial.
Understanding Cryptocurrency Seizure: What Happens and Why?
Cryptocurrency can be seized by the government under federal forfeiture laws, often as part of criminal investigations. Unlike traditional assets, crypto’s decentralized nature makes it traceable through blockchain analytics, but seizures can feel sudden and opaque.
- Common Signs of Seizure: Your wallet might show as frozen or inaccessible. Exchanges like Binance or Coinbase may flag transactions and instruct you to email a specific agent (e.g., from the DOJ or IRS). Blacklisted addresses prevent transfers, and you might see zero balance without explanation.
- Why It Happens: Agencies seize crypto suspected of being tied to illegal activities, such as drug trafficking (DEA cryptocurrency seizures), cybercrimes (FBI cryptocurrency operations), or sanctions evasion. Recent high-profile cases, like the FBI’s 2025 seizures exceeding $1 billion in Bitcoin and Ethereum, highlight the government’s aggressive stance.
- Legal Basis: Under 18 U.S.C. § 981 and § 982, the government can pursue civil or criminal forfeiture. Crypto is treated like any property, but its digital form requires specialized handling, including cold storage for seized assets.
If you’re searching terms like “can the government seize cryptocurrency” or “cryptocurrency frozen,” you’re not alone—thousands face this annually. The key is verifying the seizure without delay.
Step 1: Verify the Seizure and Locate the Notice
Many owners overlook official notices, leading to default forfeitures. Here’s how to check:
- Search Forfeiture.gov: This is the U.S. Department of Justice’s official site for publishing seizure notices. Search by asset type (select “cryptocurrency” or “digital currency”) and keywords like your wallet address or transaction ID. Notices typically include the seizing agency, case number, and deadlines (often 30-60 days to file a claim).
- Contact the Exchange or Wallet Provider: If notified, email the provided agent immediately. Request details on the seizure, including the warrant or court order. Note: Exchanges must comply with law enforcement, but they can’t release funds without your action.
- Blockchain Tracing Tools: Use public explorers like Etherscan or Blockchain.com to trace your funds. If they’ve moved to a government-controlled wallet (often labeled as such), it’s a red flag. For privacy-focused coins like Monero, tracing is harder, but agencies use advanced tools.
Step 2: File a Claim to Challenge the Seizure
Missing deadlines might mean forfeiture by default. Hiring a qualified cryptocurrency attorney early in the proceeding can help ensure you do not miss any deadlines. Your attorney can help you understand the different phases of the case:
- Administrative Claim: For civil asset forfeitures involving less than $500,000 in seized cryptocurrency, the government might try and take the crypto through an administrative proceeding. The agency must send notice within 60 days (or sometimes 90 days) of the taking. Then you only have 35 days thereafter to file a verified claim to demand court action which converts the proceeding from administrative to judicial.
- Judicial Claim: The government might proceed directly to a judicial proceeding if the seized crypto is worth more than $500,000 or if you filed a verified claim in an administrative proceeding. In those cases, an Assistant United States Attorney (AUSA) must file a complaint for forfeiture in the appropriate U.S. District Court. Then you have a limited amount of time to file a judicial claim (even if you already filed an administrative claim). You also have a limited amount of time to file an answer to the complaint and motion to dismiss.
Step 3: Recovering Frozen Cryptocurrency Funds
Recovery isn’t guaranteed, but success rates often improve with the proper representation. You might also need an expert witness to show problems with the government’s “tracing” that allegedly shows a nexus between the tainted cryptocurrency and your wallet.
Hire a cryptocurrency attorney experienced in forfeiture. Ask the attorney for a list of their case results that can be verified. Ask how many cases they have taken to hearings and trial. Ask to see a list of their appeals in forfeiture cases and the results.
Delayed action can lead to permanent loss of your seized crypto. On the flip side, successful claims have returned millions to owners.
For personalized advice, contact an attorney focused on cryptocurrency seizures for forfeiture. We’ve handled cases throughout Florida, and across the county – from Washington D.C. to the Cayman Islands. We know the top experts in each jurisdiction or for each specific issue.
This guide is for informational purposes; it’s not legal advice. Each case is unique—seek professional help to maximize your chances. If you’re facing a cryptocurrency seizure in Florida or beyond, schedule a free consultation with our team to discuss your options.
Attorney Leslie Sammis is a cryptocurrency seizure and forfeiture attorney in Tampa, FL. Call 813-250-0500 to set up a free and confidential consultation.