Administrative Forfeitures Proceedings

Administrative forfeiture proceedings are overseen by the seizing agency and provide an opportunity for “the [G]overnment and private parties to resolve their forfeiture-related disputes” before seeking court intervention. United States v. Ninety Three Firearms, 330 F.3d 414, 422 (6th Cir. 2003) (quoting United States v. Twelve Firearms, 16 F. Supp. 2d 738, 741 (S.D. Tex. 1998), aff’d, 54 F. App’x 405 (5th Cir. 2002).

In United States v. Eight Thousand Eight Hundred & Fifty Dollars ($8,850) in U.S. Currency, 461 U.S. 555, 566, 103 S. Ct. 2005, 76 L. Ed. 2d 143 (1983), the court noted “administrative proceedings are less formal and expensive than judicial forfeiture proceedings.”

If a Claimant submits to administrative forfeiture, they are not permitted to contest the legality of the forfeiture. For this reason, individuals who can afford an attorney should demand court action to convert the administrative forfeiture into a judicial proceeding.

Only certain assets are subject to administrative forfeiture. The following types of property are not subject to administrative forfeiture:

• Real property can never be forfeited administratively. 18 U.S.C. § 985. J
• Monetary instruments—like currency and hard cash—can always be forfeited administratively. See 31 U.S.C. 5312(a)(3).

Other types of property, including the funds in a bank account or cryptocurrency in a wallet, can only be forfeited administratively if valued at less than or equal to $500,000. See 19 U.S.C. § 1607.

In U.S. Dep’t of Just., Asset Forfeiture Policy Manual, 6-3, n.5 (2025), the government notes that funds in bank accounts are not “monetary instruments” as defined by federal statute, such that the “$500,000 cap on administrative forfeiture” applies.

The seizing agency initiates administrative forfeiture proceedings by providing appropriate notice. Under 18 U.S.C. § 983(a)(1), “any person claiming” the seized property “may file a claim” with the seizing agency or on www.forfiture.gov no later than the deadline provided in the agency’s notice. See 18 U.S.C. § 983(a)(2); U.S. Dep’t of Just., Asset Forfeiture Policy Manual, 6.C.1 (2025).

Filing a claim triggers the Government to either return the property to the Claimant or initiate judicial forfeiture proceedings. Judicial proceedings can be initiated by either filing a civil forfeiture complaint or criminal indictment containing forfeiture allegations.

The judicial proceedings must be initiated within 90 days unless the Government receives a court-ordered extension for good cause. 18 U.S.C. § 983(a)(3)(A).

Indeed, the Government may file a civil forfeiture complaint and include parallel forfeiture allegations in a companion criminal indictment. 18 U.S.C. § 983(a)(3)(C) provides:

“[I]n addition to[] filing a civil forfeiture complaint, the Government may include a forfeiture allegation in a criminal indictment.”