Frozen Cryptocurrency Seized for Forfeiture

What happens when a law enforcement agency in the United States targets your cryptocurrency wallet to seize its content for a forfeiture proceeding?

The owner of the wallet typically figures out there is a problem when:

• Their exchange account is frozen, and support tells them to contact a specific federal agency or agent;
• The wallet address has been blacklisted, flagged, or restricted from transfers;
• A bank, exchange, or stablecoin issuer says the freeze is due to law enforcement instructions.

Many people are surprised that the government might not even be required to send you a notice of seizure or notify you of the reason the cryptocurrency wallet was frozen or its contents were seized for forfeiture. The notice of seizure might not show up on the forfeiture.gov website for months or years.

Finding an Attorney After Cryptocurrency Is Seized or Frozen

The lawyers at Sammis Law Firm are focused on handling federal cryptocurrency forfeiture matters. We hlep clients by taking the following actions:

• Determining whether a lawful seizure actually occurred
• Identifying missed notice or filing deadlines
• Challenging jurisdiction over digital assets
• Contesting flawed tracing assumptions
• Asserting innocent owner defenses
• Seeking return of property through administrative or judicial remedies

These cases are rarely resolved by waiting. If your cryptocurrency is frozen, blacklisted, or restricted due to a federal investigation, the most dangerous assumption is that nothing is happening. Something is already happening.

The question is whether the government will be required to prove its case — or whether silence and delay will allow the seizure to harden into forfeiture.

Attorney Jason Sammis and Leslie Sammis focus on civil asset forfeiture with an emphasis on the seizure of cryptocurrencies. We are experienced handling a request for quick release, sending verified claims, filing an answer to any complaint for forfeiture, and assert innocent owner defenses. We’ve taken forfeiture cases to jury trial and gotten the court to order the government to pay our client’s attorney fees. We’ve also taken forfeiture cases up on appeal and helped our client prevail.

Contact us for more information.

Call 813-250-0500.

Lack of Notice in Cryptocurrency Seizure Cases

In traditional asset forfeiture cases, the government sends a written Notice of Seizure shortly after property is taken. Cryptocurrency cases often unfold very differently because:

• The government does not physically take property
• The seizure occurs by controlling private keys, freezing exchange accounts, or blacklisting addresses
• The first “notice” is indirect — through an exchange, wallet provider, or stablecoin issuer
• Formal notice may be delayed, defective, or never sent at all

Instead, affected owners might be told:

• “This account is restricted due to a law enforcement request. Please contact [Agent Name] at [agency email].”

By the time you receive that message, the clock on your legal rights may already be running.

Federal Agencies That Seize or Freeze Cryptocurrency for Forfeiture

Cryptocurrency is seized or frozen by multiple federal agencies, including:

• Federal Bureau of Investigation (FBI)
• Drug Enforcement Administration (DEA)
• Internal Revenue Service Criminal Investigation (IRS-CI)
• United States Secret Service
• United States Department of Justice (DOJ)

These federal agencies frequently coordinate with:

• Centralized exchanges (Binance, Coinbase, Kraken, etc.)
• Stablecoin issuers (USDT, USDC)
• Blockchain analytics vendors
• Foreign law enforcement partners

In most civil asset forfeiture proceedings targeting cryptocurrency, none is arrested and no criminal charges are ever filed. A frozen wallet, blacklisted address, or exchange restriction usually means:

• The government is preserving the asset
• No judge has yet ruled that the cryptocurrency is forfeitable
• The owner might be an “innocent owner” who will eventually get the cryptocurrency back

A civil asset forfeiture attorney at Sammis Law Firm can help you file a verified claim that triggers a 90 day deadline for an Assistant United States Attorney (AUSA) to either return the property or file a complaint for forfeiture.

If the government misses that deadline, the court might later order the property to be returned. The government might miss that deadline, especially in crypto matters involving tracing, foreign exchanges, or blockchain analytics errors.

Why Cryptocurrency Forfeiture Cases Are Especially Error-Prone

Crypto forfeiture cases frequently involve:

• Probabilistic tracing, not direct proof of ownership
• Incorrect wallet attribution
• Misinterpretation of exchange deposit flows
• Confusion between control, access, and ownership
• Blockchain analytics tools treated as fact instead of hypothesis

Once cryptocurrency is frozen, agencies are often slow to reassess mistakes, even when evidence shows the wrong wallet or account was restrained.

If You Were Told to “Contact the Agent,” You Should Pause Before Responding

When an exchange gives you an agent’s email address, it may feel cooperative to reach out immediately. However, you should keep in mind the following:

• Anything you say can be used to retroactively justify forfeiture
• Agents are not required to explain your rights
• The government may be attempting to gather evidence, not help you

Cryptocurrency forfeiture cases are civil proceedings that might later result in a criminal charge. Strategy matters from the first contact.

This article was last updated on Friday, January 19, 2026.