Seizure for Forfeiture by FBI
The FBI is a federal law enforcement agencies that seizes assets for civil asset forfeiture. The FBI, along with other agencies like the DEA, CBP, HSI, and USSS, use civil forfeiture as a tool to combat criminal activity.
The FBI views forfeiture as a way to disrupt criminal organizations, such as drug trafficking cartels, white-collar crime rings, and terrorist groups, by taking away their ill-gotten gains used to commit crimes.
The FBI can seize various types of property through civil forfeiture, including cash, bank accounts, vehicles, real estate, jewelry, firearms, and cryptocurrency.
A civil forfeiture case is an “in rem” action, meaning the legal case is brought against the property itself, not against the person. In civil asset forfeiture cases, the government can seek forfeiture even if the property owner is never charged with or convicted of a crime.
In a civil forfeiture case, the government’s burden of proof is “preponderance of the evidence,” meaning they only need to show it is more likely than not that the property is connected to criminal activity. This is a significantly lower standard than the “beyond a reasonable doubt” standard required for a criminal conviction.
If the FBI seizes your assets, they will send you a “Notice of Seizure” explaining their intention to forfeiture your property. This notice provides the specific information you need to file a claim to contest the seizure. If you do not file a claim within the specified deadline, the property is administratively forfeited to the government.
If you do file a timely claim, an Assistant United States Attorney will decide whether to return the property to you, or file a complaint for forfeiture in the appropriate U.S. District Court.
Attorney for FBI Seizures for Forfeiture
The attorneys at Sammis Law Firm are experienced in fighting both criminal and civil asset forfeiture cases. We can help you respond to a criminal investigation initiated by the FBI, and file a claim for court action. We represent all types of claimants including innocent owners, bailees, spouses, lien holders and secured creditors.
Contact an experienced asset forfeiture attorney at Sammis Law Firm.
Call 813-250-0500.
FBI Asset Seizures in the Digital Age
When most people hear that the FBI has “seized” property, they assume the government already proved wrongdoing. In reality, federal seizure and forfeiture follow a specific legal process—one that often begins long before criminal charges are filed, and sometimes before the owner even knows they are under investigation.
With cryptocurrency now one of the most frequently seized asset classes nationwide, understanding how the FBI conducts seizures has never been more important. This article explains the federal system from the ground up: what a seizure is, how forfeiture works, the standards agents must follow, and the common mistakes that occur—especially when digital assets are involved.
Under federal forfeiture law, an asset is anything of value, including:
- Cash
- Real estate, vehicles, aircraft, and boats
- Licenses or business interests
- Artwork, jewelry, tax refunds
- Cryptocurrency and digital assets
If it has value—and the government believes it was used in a crime, obtained from a crime, or represents proceeds of a crime—it can be seized. A seizure occurs when the U.S. government takes custody or control of property. For the FBI, a seizure normally happens through:
- A search warrant
- A seizure warrant specifically describing the property
- An arrest-related seizure (incident to arrest or during a lawful search).
The Fourth Amendment requires that federal agents demonstrate probable cause—a reasonable, factual basis to believe the property is evidence of a crime, contraband, proceeds, or an instrumentality. In other words, the FBI cannot take property simply because it suspects someone did something wrong.
It must show why that specific asset is tied to a specific federal crime.
Four Categories of Property the FBI May Seize
Federal law recognizes four types of property that may be seized:
- Evidence of a Crime – Items that prove or illustrate criminal conduct.
- Contraband 0 Property illegal to possess (e.g., drugs, unregistered firearms).
- Fruits of the Crime – The profits: money, crypto, assets purchased with illicit proceeds.
- Instrumentalities of the Crime – Property used to commit the crime, such as vehicles, computers, or wallets holding criminal proceeds.
Crypto complicates these categories because:
- A single wallet may contain both lawful and unlawful funds.
- Exchanges aggregate large numbers of user deposits into pooled addresses.
- Blockchain movement is transparent—but often misunderstood.
These complexities mean the FBI must be exceptionally precise when demonstrating which digital assets are actually traceable to illegal conduct.
How Federal Agents Plan a Seizure
The FBI emphasizes pre-seizure planning, especially for high-value assets or assets requiring specialized handling such as:
- Digital wallets
- Large crypto balances
- Servers and devices storing private keys
- Real estate or vehicles
- Luxury goods
During the planning phases of the investigation, federal agencies evaluate:
- The value of the asset
- Storage and security concerns
- Potential innocent-owner claims
- Evidence linking the asset to the crime
- Whether seizure is necessary or strategically appropriate
This planning prevents unnecessary or unlawful seizures and protects the government from liability for wrongful restraint.
After the seizure involving a high value asset valued at over $500,000, the U.S. Marshals Service may take responsibility for:
- Managing seized property
- Safeguarding assets
- Converting assets to cash after forfeiture
- Ensuring that seized property does not lose value through neglect
With crypto, the Marshals commonly take custody by transferring seized assets into government-controlled wallets.
How a Seizure Warrant Allows the Seizure of Property
A federal seizure warrant is signed by a U.S. Magistrate Judge. It must identify the asset with specificity, establish probable cause, explain the connection or nexus between the asset and a federal crime, be supported by a sworn affidavit, and demonstrate reliability and corroboration of evidence
A affidavit in support of the application for the federal seizure warrant includes:
- Clear, plain-language explanations
- Independent verification of facts
- Logical tracing of funds
- Identification of owners and claimants
- Evidence showing control of the asset
A weak affidavit relies on speculation, assumptions about crypto tracing, or categorical statements unsupported by forensic facts.
Can the FBI Seize Property for Federal Asset Forfeiture?
Yes, the FBI can seize property for federal asset forfeiture proceedings. Forfeiture is the process by which ownership permanently transfers from the individual to the United States. The stated objective of forfeiture is to remove the profit motive from criminal activity and return illegally obtained property to victims.
There are two forms of asset forfeiture at the federal level:
- Civil Forfeiture (18 U.S.C. § 981) – The government sues the property itself—not the owner. For example, “United States v. 2.1 Bitcoin.” A criminal conviction is not required. In fact, none needs to be arrested for or even charged with a crime.
- Criminal Forfeiture (18 U.S.C. § 982) – Forfeiture is tied to a criminal conviction and becomes part of the defendant’s sentence.
In both contexts, the government must prove that the property is proceeds of a federal crime, used to commit a federal crime, or traceable to such conduct. The FBI traces forfeiture principles back to ancient seizure doctrines and English maritime law. Historically, forfeiture targeted piracy and smuggling. Today, most asset seizures for forfeiture target:
- Fraud and theft
- Drug trafficking
- Money laundering
- Terrorism
- Crypto-related crime
In a forfeiture case, the federal prosecutor (Assistant United States Attorney) will ask the case agent the following types of questions before deciding to file a complaint for forfeiture:
- What is the specific federal crime?
- What statute authorizes forfeiture?
- What property is forfeitable?
- What evidence ties this asset to that crime?
- How and where is the asset currently held?
- What is its value?
- Who owns or controls it?
- Are there competing claims or innocent owners?
If the FBI cannot clearly answer these questions, the AUSA might decline to file the complaint and order the FBI to return the property to the owner.
Common Issues in FBI Crypto Seizures
The FBI should follow best practices when seizing crypto to avoid misinterpreting an address, a cluster, or a transaction, which can cause wrongful seizure of legitimate funds. While the FBI has strong internal standards, crypto introduces unique challenges:
- Misidentification of Wallet Owners – An exchange deposit address is not proof of ownership. Many are pooled “hot wallets” shared by thousands of users.
- Faulty Nexus Assumptions – Agents may assume that if any illicit funds touched a wallet, all funds in the wallet are tainted. Federal law does not support that assumption.
- Difficulty Distinguishing Proceeds vs. Commingled Funds – Crypto wallets mix lawful and unlawful funds rapidly. The government must prove traceability, not mere proximity.
- Overreliance on Vendor Software – Blockchain-analysis tools (Chainalysis, TRM, etc.) are powerful—but not infallible. Their clustering heuristics are often misunderstood.
- Gaps in Technical Expertise – Some affidavits assume things about wallet behavior or transaction flows that are not technically correct.
- Lack of Independent Verification – Best practice requires corroborating every tracing step. Too often, investigators rely solely on a tool’s output.
Finding an Attorney After a FBI Seizure for Forfeiture
Federal seizures carried out by the FBI are governed by clear constitutional and statutory rules. Your attorney can help you determine wether the seizure is supported by probable cause, explains a specific nexus to a federal offense, is supported by accurate evidence, and involves proper warrant procedures. If the property was illegally seized, is not connected to the crime, or if you are an innocent-owner, an experienced asset forfeiture attorney can help you challenge the taking by filing a verified claim for court action with the FBI or a Rule 41(g) motion for the return or property in the appropriate U.S. District Court.
More FBI seizures are involving cryptocurrency. Because digital assets move differently than cash or cars, investigators with the FBI must use heightened caution— and the owners of the property must be prepared to challenge faulty or inadequate tracing.
If the FBI seizes your digital assets, you still have important rights under federal law. An attorney at Sammis Law Firm can challenge the taking and fight for the return of the property.
Call 813-250-0500.
This article was last updated on Tuesday, December 9, 2025.
