Types of Assets Subject to Forfeiture

Both civil and criminal asset forfeiture laws allow for the seizure of a wide range of assets. As a general rule, assets are either the proceeds of a crime or were used to facilitate a crime.

A wide range of property types can be seized in civil asset forfeiture proceedings, as the statutes and regulations governing forfeiture are intentionally broad to encompass the many forms that criminal proceeds or instrumentalities may take. The following categories describe the principal types of property subject to seizure, as recognized by federal law and interpreted by the courts:

• Cryptocurrency (Digital and Virtual Currency)
  • With the rise of cryptocurrencies, law enforcement agencies can now seize assets like Bitcoin and other digital currencies if they are used to facilitate criminal transactions or constitute proceeds. 
• Currency and Financial Instruments
  • Cash, bank accounts, checks, money orders, stocks, bonds, and other negotiable instruments are routinely seized in forfeiture actions, especially in cases involving drug trafficking, fraud, or money laundering.
  • The government may seize both physical currency and funds held in financial institutions if they are traceable to criminal conduct.
• Tangible Personal Property
  • Tangible personal property encompasses physical items that are not real estate, including vehicles (cars, boats, aircraft), jewelry, art, electronics, firearms, and other movable goods.
  • Tangible personal property may be seized if it is used in the commission of a crime, is the proceeds of crime, or is otherwise traceable to illegal activity.
• Real Property
  • Real property includes land and anything permanently affixed to it, such as houses, buildings, and other structures.
  • Real property is frequently subject to forfeiture when it is used to:
    • facilitate criminal activity such as drug trafficking or money laundering); or
    • purchased with proceeds of crime.
  •  The interest subject to forfeiture may be fee simple, leasehold, or other recognized interests, and state law often determines the nature and extent of the property interest at issue.
• Intangible Property
  • Intangible property includes rights and interests that are not physical in nature, such as intellectual property rights, contractual rights, business interests, and shares in corporations or partnerships.
  • While less common, intangible assets can be subject to forfeiture if they are proceeds of or involved in criminal activity.
• Proceeds of Crime
  • Any property, whether tangible or intangible, that constitutes or is derived from proceeds traceable to a criminal offense can be seized.
  • Proceeds of crime seized for forfeiture includes property purchased with illicit funds, as well as property that has been commingled with criminal proceeds.
  • Instrumentalities of Crime Property used to commit or facilitate the commission of a crime—such as vehicles used to transport drugs, computers used in fraud, or real estate used for illegal operations—may be seized as instrumentalities, even if not directly purchased with criminal proceeds.
• Contraband
  • Contraband refers to property that is illegal to possess under any circumstances, such as controlled substances, certain firearms, counterfeit goods, or smuggled items.
  • Contraband is always subject to forfeiture and cannot be claimed by any party, including innocent owners.
• Mixed-Use Property
  • Property that is only partially involved in criminal activity may also be subject to forfeiture, but courts may order partial forfeiture or sever interests to protect innocent owners or co-owners, such as spouses or joint tenants, to the extent of their legitimate interest.
• Substitute Assets
  • If the specific property subject to forfeiture is unavailable because it was transferred, hidden, or diminished in value, the courts may order the forfeiture of substitute assets of equivalent value, provided statutory requirements are met.
  • Seizing substitute assets for forfeiture ensures that criminal defendants cannot shield assets from forfeiture by disposing of them before seizure.
  • Furthermore, seizing substitute assets might prevent criminals from avoiding forfeiture by simply spending, hiding, or transferring their ill-gotten gains.
• Proceeds from Sale of Forfeited Property
  • If the government has already sold or otherwise disposed of the forfeited property, the proceeds from such sale are themselves subject to distribution according to the interests of owners, lienholders, and victims, as determined by statute and regulation.

The statutory and regulatory definitions of “property” in the forfeiture context are intentionally broad. For example, 18 U.S.C. § 983(d)(6) defines “owner” to include persons with an ownership interest in the specific property sought to be forfeited, including leaseholds, liens, mortgages, recorded security interests, or valid assignments of an ownership interest, but excludes general unsecured creditors, certain bailees, and nominees without dominion or control.

Federal regulations and the the case law interpreting those regulations provide additional guidance showing that both real and personal property, tangible and intangible, may be seized, and that the government’s interest in forfeited property generally relates back to the time of the illegal act, subject to the rights of innocent owners and other protected claimants.

In conclusion, under federal asset forfeiture laws, any property—real, personal, tangible, intangible, proceeds, instrumentalities, contraband, or substitute assets—may be seized in civil asset forfeiture, provided it is connected to criminal activity as defined by statute. The breadth of property types subject to forfeiture is a deliberate feature of the statutory scheme, designed to ensure that crime does not pay and that all forms of criminally derived or utilized property can be reached by the government.

This article was last updated on September 12, 2025.