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Ultimate Guide to Cryptocurrency and Civil Asset Forfeiture in the United States

Ultimate Guide to Cryptocurrency and Civil Asset Forfeiture in the United States

Cryptocurrency was built to be decentralized, private, and secure-but that doesn’t stop
governments from seizing it. Across the U.S., law enforcement agencies are aggressively
pursuing civil asset forfeiture of Bitcoin, Ethereum, NFTs, and other digital assets-often without
filing criminal charges. If your crypto wallet was frozen or your exchange account drained,
you’re not alone. This guide will walk you through how cryptocurrency forfeiture works, your
rights, and how to fight back.

Whether you’re an investor, miner, trader, or startup founder, you need to understand the
legal risks-and defenses-surrounding digital asset seizures.

What Is Civil Asset Forfeiture?

In a civil forfeiture case, the government doesn’t accuse a person of a crime-it targets the
property itself. That means your crypto can be seized based solely on suspicion that
it’s connected to illegal activity.

Unlike criminal forfeiture, which follows a conviction, civil forfeiture actions can occur without
charges or trials. Federal and state authorities use laws like 21 U.S.C. § 881
to seize “proceeds of crime,” which increasingly includes digital wallets and crypto exchange
accounts.

Common Crypto Forfeiture Triggers:

  • Transactions flagged as “suspicious” by exchanges
  • Wallets linked to mixers or anonymity tools (e.g., Tornado Cash)
  • Funds received from hacked, stolen, or scam-linked wallets
  • DEA or FBI seizures during raids or arrests of third parties

If your wallet was involved in any of these-even peripherally-you could face a seizure
notice.

How Is Cryptocurrency Seized?

Unlike physical cash, crypto is often seized through software, subpoenas, and account
freezes. Here’s how it typically happens:

  1. Exchange Freezes: Agencies serve warrants to Coinbase, Binance,
    Kraken, etc. Your funds are frozen or transferred to a government wallet.
  2. Wallet Confiscation: If you self-custody, agents may physically seize
    hardware wallets or pressure you to provide seed phrases.
  3. Private Key Extraction: If your keys are stored digitally and law
    enforcement gains access (e.g., during a raid), your funds can be moved instantly.

Once the government has custody, you’ll receive a forfeiture notice with a strict deadline to
file a claim. Miss it, and your assets may be lost permanently.

Your Rights in a Crypto Forfeiture Case

The U.S. Constitution guarantees due process-but civil forfeiture often skirts these
protections. You are not entitled to a public defender, and timelines are short.

  • You have 30 days to file a claim after receiving federal forfeiture notice
    (per 28 CFR §
    8.10    ).
  • You can request a judicial forfeiture hearing instead of administrative
    review.
  • You must prove your ownership and lawful source of the assets.

If you’re an “innocent owner,” meaning you did not know or consent to the illegal use of your
assets, you may have a strong defense-but the burden is on you to prove it.

Real Examples: How the Government Seizes Crypto

  • Bitfinex Hack Recovery (2022): DOJ seized over 94,000 BTC (~$3.6B)
    from a New York couple accused of laundering stolen funds.
  • “Pig Butchering” Scam Victims: In 2023, FBI Phoenix recovered $112M
    in crypto from fraudulent investment platforms-some seized without returning to rightful owners
    yet.
  • DeFi Wallet Seizures: IRS and DEA have begun issuing seizure orders
    on smart contract wallets used in staking or farming platforms.

Law enforcement is increasingly capable of tracking wallet flows and linking public
addresses to real-world identities via KYC data and analytics firms like Chainalysis or TRM
Labs.

How to Fight Back

  1. Act Immediately: Deadlines are tight. Don’t wait for charges-file your
    claim quickly.
  2. Hire Crypto-Savvy Counsel: Civil forfeiture plus crypto law requires deep
    legal and technical knowledge. We handle both.
  3. Document Source of Funds: Show transaction logs, exchange receipts,
    mining income, etc. The clearer the paper trail, the stronger your case.
  4. Push for a Judicial Hearing: Don’t rely on administrative mercy. Force
    the government to justify the seizure in court.

Our Articles page contains specific how-to
guides for CBP claims, DEA notices, and crypto wallet defense strategy.

Related Articles

Conclusion: Crypto Isn’t Immune-But You Have Options

Policing for Profit

The government may seize your digital assets-but that doesn’t mean you’re guilty or
powerless. With the right legal tools, documentation, and defense strategy, you can fight back
and reclaim what’s rightfully yours. Whether it’s Bitcoin, Ethereum, NFTs, or stablecoins-don’t
let silence become surrender.

Call to Action

Has your crypto wallet been seized or frozen? Don’t wait. The deadlines are real and so
are your chances of recovery. Contact ForfeitureUSA today for a free, confidential case review.
Call 330-720-0398 or visit our
Contact page to get started.

Due Process in Civil Forfeiture: Are Property Owners’ Rights Protected?

Why Due Process Matters in Civil Forfeiture

“Due process” is the constitutional guarantee that the government will not deprive you of life, liberty, or property without fair procedures. In criminal law, due process means you get things like a speedy trial, the right to an attorney, and the presumption of innocence. In civil asset forfeiture, however, the process is skewed: the case is against your property, not you, so many of the usual protections don’t automatically apply. Police can seize your cash, car, or home on suspicion of a crime, yet you might not get a hearing for over a year while the government holds your property. You aren’t entitled to a public defender, and the burden may fall on you to prove the property is “innocent.” This raises a fundamental question: Are property owners being treated fairly?

Over the years, courts and commentators have increasingly voiced concerns that civil forfeiture lacks adequate due process. Without proper checks, forfeiture can become “punishment first, due process later” – or never. Imagine having your life savings seized and having to wait months or more just to plead your case, all while bills mount and you struggle without your money or vehicle. That delay and imbalance can effectively deny justice, even if you eventually win.

No Prompt Hearing? The Supreme Court’s 2024 Decision

A critical aspect of due process is the right to a prompt post-seizure hearing. If the police take your property, should you quickly get in front of a judge to challenge the seizure? Many would say yes – otherwise the government could hold things indefinitely, even if the seizure was baseless. However, in May 2024, the U.S. Supreme Court delivered a setback to those hoping for a constitutional right to a speedy hearing. In the case Culley v. Marshall, two women (as innocent owners of cars used by others in crimes) argued that Alabama’s lack of any prompt post-seizure hearing violated their due process rights. The Court ruled 6-3 against them. Justice Kavanaugh, writing for the majority, said that as long as the state provides a “timely” final forfeiture proceeding, the Constitution does not require a separate preliminary hearing to determine if the police can keep the property in the meantime. In short, owners have to wait for the main event; there is no inherent right to an early intervention by a judge.

This decision disappointed reform advocates. The Institute for Justice, which filed a brief for the owners, called the ruling “a big loss for private property rights,” warning that it means many owners will “never get their day in court when it could do them some good – shortly after the seizure”. Indeed, if the government can hold your car for a year or two before the case ends, you might win in the end, but the victory is hollow – you needed the car last year to get to work. The dissenting justices in Culley (the Court’s three liberal members) and even some concurring conservatives acknowledged that civil forfeiture’s fairness issues are troubling. However, the majority deferred to precedent and left reform to legislators.

Delayed Justice: How Long Can They Keep Your Property?

Without a right to a quick hearing, how long might an owner wait? It varies:

  • Federal Cases: Federal law (18 U.S.C. § 983) requires the government to send notice of seizure in 60 days and, if you file a claim, generally to file a forfeiture complaint in court within 90 days after that. So that’s about 5 months max to get into court. However, that’s just to start the case. The court process itself can take months or years more. Some federal seizures (especially involving many claimants or complex investigations) drag on for 2-3 years before resolution. There’s technically a right to ask for the case to be “promptly” handled, but prompt is a loose term.
  • State Cases: Some states have even fewer protections. In the Culley case (Alabama), there was no provision for a hearing until the final case, and the state took its time filing the case. This meant over a year of limbo for the owners. Other states might allow a hardship petition to get property back sooner (e.g., if you can show you need your car to get to work, etc.), but these are discretionary. A few states (like New York City in federal court, via the Krimstock ruling) require a quick hearing for vehicles, but that’s the exception, not the norm nationwide.

The Result: It’s possible for you to be without your property for a very long time without a conviction, or even without any charges. This situation flips the script of “speedy trial” – in forfeiture, the government has less pressure to move fast, because the property is essentially taken out of circulation (and often earning interest for law enforcement accounts). From the owner’s perspective, justice delayed is justice denied.

Reform Efforts: Ensuring Fairness and Accountability

The outcry over due process in forfeiture has led to growing bipartisan agreement that reforms are needed. Here are some of the notable efforts and ideas to restore balance:

  • FAIR Act (Federal Legislation): In December 2024, Senators Cory Booker (D-NJ) and Rand Paul (R-KY) introduced the Fifth Amendment Integrity Restoration Act (FAIR Act). This bill aims to overhaul federal forfeiture. Key provisions include: raising the burden of proof on the government, ending the “equitable sharing” kickbacks to local police, and importantly – ensuring due process protections for property owners. Senator Booker emphasized how current law lets police “keep cash, cars, and even homes based on mere suspicion… and the burden is on the property owner to prove they should get their property back,” calling reform “long overdue”. Senator Paul echoed that “the government should never have the power to seize property without due process”. The FAIR Act would, among other things, guarantee prompt post-seizure hearings and provide for counsel fees for successful owners, tilting the scales back toward fairness. The 2024 bill garnered unanimous committee support, signaling rare bipartisan unity on this issue. While it has not passed into law yet, the momentum is building.
  • State Reforms: States like New Mexico, Nebraska, and Maine have gone so far as to largely abolish civil forfeiture, requiring a criminal conviction to forfeit assets (thus eliminating the due process gap by merging it with the criminal case). Other states have introduced requirements for a prompt hearing. For example, some states ensure that if no criminal charges are filed within a set time, the property must be returned. These reforms vary, but the trend is toward more protections at the state level, even as federal law lags.
  • Judicial Awareness: Even though the Supreme Court didn’t mandate hearings in Culley, lower courts are increasingly skeptical of long delays. There have been instances where courts, citing due process, ordered the return of property before the end of a case if the delay was too long or the hardship too great. The more judges see egregious cases (like someone losing their home because their money was tied up for years), the more precedents we’ll get that push back on government stalling tactics.

How You Can Protect Your Rights

Given the current state of the law, what can an individual do to inject some due process into their forfeiture fight?

  1. Demand Judicial Involvement: If your assets were seized without charges, force the issue by filing a claim (in federal cases) or whatever triggers a court case in your jurisdiction. This at least gets you before a judge eventually. If the agency can keep it administrative, they face little oversight.
  2. File a Motion for a Hearing: Even though Culley said it’s not constitutionally required, your attorney can still motion the court for an early hearing or return of property. Some courts may entertain a motion for preliminary injunction or a Rule 41(g) motion (for return of property) if circumstances warrant. For example, federal courts sometimes consider a motion for return of seized property if you can show irreparable harm from its loss and likelihood of success in challenging the seizure. You might not always win, but it flags the issue.
  3. Highlight Hardships: If the property seized is causing significant hardship (e.g., seizure of a business bank account shutting down the business, or a work vehicle you need), document this thoroughly. Courts are more likely to intervene if they see that the forfeiture is crippling your life before any adjudication.
  4. Public and Media Pressure: Especially in clear-cut unfair cases, going to the media can help. Public outcry often spurs prosecutors to resolve a case more quickly or even return property. No agency likes bad press about taking a veteran’s life savings or a grandma’s house. Organizations like the Institute for Justice sometimes take on egregious cases and shine a spotlight on them – which can indirectly shame the government into providing relief.
  5. Stay Informed on Your Case: Sometimes notices or hearing dates slip through the cracks. Ensure the agency and court have your current address. Missing a court date or deadline can forfeit your rights. It’s your property – don’t be passive. Make sure the process (even if slow) keeps moving. Your attorney can file motions to compel the government to provide updates or push the case forward if it’s languishing.

Conclusion: Balancing Justice and Property Rights

Civil forfeiture pits the power of the state against the rights of individuals in a unique way – the police can take now and ask questions later. Due process is what keeps that power in check. While recent court decisions like Culley show that the fight for stronger protections isn’t over, there is cause for optimism as bipartisan reforms gain traction and public awareness grows. If you are caught up in a forfeiture case, understanding your due process rights (and how to assert them) can make the difference between a quick return of property and a long, unjust ordeal.

Call to Action:

Do you feel the government is dragging its feet while holding your money or property? Worried that your rights are being overlooked in a forfeiture case? Contact Sebastian Rucci to stand up for your due process rights. We are actively engaged in the fight for fair treatment of property owners and stay on top of the latest legal developments. Sebastian can press the courts and prosecutors for timely action and make sure your voice is heard. Don’t let bureaucratic delays or lack of counsel put you at a disadvantage – call 330-720-0398 for a free consultation and let us help you get the justice you deserve.

Cryptocurrency Forfeiture: When the Government Seizes Digital Assets

Crypto: The New Frontier of Asset Forfeiture

Over the past decade, cryptocurrency has evolved from a niche tech curiosity to a major financial asset – and with that rise comes attention from law enforcement. Bitcoin, Ethereum, and other digital coins are now routinely seized by government agencies in both criminal and civil forfeiture actions. In fact, by 2025 law enforcement agencies (often with the help of blockchain analytics companies) have seized or frozen approximately $12.6 billion worth of cryptocurrency worldwide. This astonishing figure shows how big crypto forfeiture has become.

Why are governments so interested in crypto? On one hand, cryptocurrencies are used by bad actors – from ransomware gangs and dark web drug dealers to fraudsters – because of the semi-anonymity and ease of cross-border transfer. On the other hand, every crypto transaction is recorded on a blockchain, which can actually make it easier to trace illicit funds compared to cash. Agencies have realized that “follow the money” works in crypto, too, and they are getting more sophisticated at tracking and grabbing digital loot.

How Does the Government Seize Cryptocurrency?

Seizing crypto is different from seizing physical assets, but the legal framework is similar. If agents believe your digital assets are connected to illegal activity (say, part of a money laundering scheme or obtained via fraud), they can get a warrant or court order to seize those assets. Here’s how it typically happens:

  • Exchange Accounts: The easiest target is cryptocurrency held on exchanges (like Coinbase, Binance, etc.). Agents serve the exchange with a seizure warrant. The exchange is compelled to transfer the specified crypto from your account to a government-controlled wallet. You might simply try to log in one day and find your funds gone or account frozen. The exchange will usually send you a notice that your assets were seized by a given agency.
  • Hardware Wallets & Raids: If you self-custody (e.g., on a hardware wallet like Ledger or a mobile wallet), agents need to physically obtain the device or recovery phrase. In some cases, during a raid on your home or office, they will confiscate hardware wallets or written seed phrases. If you are taken into custody, they might pressure you to divulge passwords – though you have a right to remain silent. Notably, if the government cannot obtain your keys, they effectively can’t access the crypto (this has happened where suspects refused to unlock wallets – the assets remained in limbo). But beware: refusing a court order to provide access could lead to contempt charges.
  • Smart Contract Seizures: A newer development is seizing assets from smart contracts or DeFi platforms. For example, if your crypto is earning interest on a DeFi app, agents might not be able to “seize” from the contract directly, but they can order you (or the platform) to transfer it. There have also been instances of the government seizing domain names of websites (including crypto exchange fronts) to indirectly access user funds.

Legally, once in government custody, crypto is treated as property subject to forfeiture similar to cash. One big difference: crypto’s value can fluctuate wildly. This raises questions – if your $50k in Bitcoin was seized and by the time of the court hearing it’s worth $80k (or $20k), that volatility can matter. Typically, if returned, you get the amount of crypto back (not its original USD value), so you assume the market risk during the seizure period.

High-Profile Cryptocurrency Seizures

To understand what’s at stake, consider some high-profile cases and uses of crypto forfeiture:

  • Largest Crypto Seizure in History: In November 2020, the U.S. government seized over 69,000 Bitcoin (worth around $1 billion then, and several billion at today’s prices) from an Individual X who hacked the Silk Road marketplace many years prior. This haul one of the largest ever – was forfeited via a consent agreement. The identity of the hacker was kept secret, prompting a FOIA lawsuit which confirmed the event but not the name. The case illustrates that the government can and will go after huge stashes of crypto connected to old crimes, and it can end with enormous windfalls for law enforcement.
  • Bitfinex Hack Seizure: In early 2022, DOJ announced the seizure of about 94,000 Bitcoin (then $3.6 billion) tied to the 2016 Bitfinex exchange hack and arrested a husband-and-wife team in New York for laundering it. This was notable not just for the amount, but for the colorful suspects and the fact that almost the entire stolen cache was recovered thanks to tracing the blockchain. These bitcoins are undergoing forfeiture proceedings.
  • Scam and Fraud Takedowns: In April 2023, the DOJ (with FBI Phoenix) seized $112 million in cryptocurrency linked to “pig butchering” investment scams. Victims were conned into sending crypto to fraudulent investment platforms. Law enforcement, using blockchain analysis, followed the money through myriad wallets to exchanges and obtained seizure warrants. That $112M will potentially be sold and used to compensate victims (after forfeiture). This case shows how forfeiture can have a positive side – recovering funds to return to fraud victims – though it still requires treating the assets as “guilty” and seizing without initial owner consent.
  • Terrorism Financing: In 2020, the DOJ seized crypto accounts used by terrorist organizations (ISIS and al-Qaeda) to raise funds via social media. More recently in 2023, another operation targeted a Hamas financing scheme, seizing around $200,000 in crypto intended for terrorists. While the amounts are smaller, these cases are high priority and demonstrate that no matter the cause – crime, fraud, or terror – crypto is on the radar.

Legal Gray Areas and Owner Protections

Cryptocurrency is a relatively new type of asset, and the law is evolving. Some points to consider:

  • Is Crypto “Currency” or “Property”? For legal purposes, crypto is generally treated as property. This means in forfeiture, it’s handled under the laws for property/evidence. For instance, the IRS treats it as property for taxes. However, some laws about “monetary instruments” (like the $10k reporting rule) don’t clearly include crypto – yet agencies might treat large crypto movements as they would cash smuggling. Legislators are playing catch-up in defining crypto in legal terms.
  • Due Process Concerns: If your bank account is frozen, you usually get notice and a chance to contest. With crypto on an exchange, some users have complained that accounts were frozen or seized without immediate explanation, leaving them in the dark. As with cash, owners can argue a due process violation if crypto is taken and held for a long time without charges or a way to contest. However, the recent Supreme Court stance (Culley case) suggests courts aren’t eager to expand hearing rights (see Due Process topic).
  • Asset Management: When the government seizes crypto, what do they do with it? Agencies typically transfer it to U.S. Marshals Service wallets. The Marshals Service has conducted auctions of forfeited Bitcoin (selling for fiat). But interestingly, in 2022 the government floated the idea of a U.S. Strategic Bitcoin Reserve – holding onto seized bitcoin as a national asset instead of selling. This indicates the government might HODL crypto in the future for public benefit (or budget reasons).
  • Third-Party Innocent Owners: Just like other property, innocent third parties can get caught up in crypto seizures. If your funds on an exchange get frozen because someone you transacted with was bad, you’ll have to assert your innocence. Or if you bought crypto not knowing it was stolen in a hack, you could suddenly face a forfeiture claim. The law does provide for innocent owner defenses in crypto cases too – you’d need to prove your bona fides similar to other asset types.

What To Do If Your Crypto Is Seized or Frozen

If you discover that your cryptocurrency has been seized by the government (or an exchange informs you of a law enforcement action), take these steps:

  1. Contact the Exchange (if applicable): Ensure it’s not a mistake or account issue. If it’s truly law enforcement, the exchange may give you a point of contact (agent or case number). They might not give much detail, but it’s worth asking.
  2. Preserve Records: Gather all records of how you obtained the crypto (exchange receipts, transaction logs, etc.). This will be important to prove legitimate ownership or source of funds.
  3. Legal Representation: Engage an attorney experienced in crypto and forfeiture. This is crucial – crypto adds technical complexity. For example, if only part of your holdings were seized as allegedly tainted, you might argue that not all coins are fungible or traceable to crime (issues of “taint” in crypto can get complex).
  4. File Claim/Petition: Similar to cash, you must file a claim for the crypto to trigger a judicial process. If you believe you’re an innocent owner, assert that in your filing. Timing is again key (usually 30 days from notice).
  5. Security Precautions: If only a portion of your assets were seized (say, one exchange account), consider moving any remaining crypto you control to a secure personal wallet. You don’t want a second surprise seizure. However, do not engage in “structuring” for example, trying to quickly split or hide assets after a seizure can raise suspicion of obstruction. Get legal advice on how to handle what you still have.
  6. Monitor Market Value: Keep an eye on the market value of the seized crypto. If it’s dropping rapidly, your lawyer might argue for an interlocutory sale (to preserve value) or return on bond – conversely, if rising, that could affect settlement talks (the government might be more willing to return assets rather than risk you getting a big windfall if they lose).

Conclusion: Stay Ahead in the Crypto Game

Cryptocurrency forfeiture is here to stay. For law enforcement, crypto is just another asset class – one that can now be traced and taken. For owners, the key is to stay transparent and compliant to avoid looking like a target. But if despite that, your digital assets are seized, remember that you have the same rights to contest as with any property. The intersection of crypto and forfeiture law is new ground, and with experienced counsel, you can mount a strong defense, sometimes even leveraging the government’s limited understanding of the technology to your advantage.

Call to Action:

Has the government frozen your crypto wallet or seized your digital currency? Don’t assume there’s nothing to be done. Our firm understands both the technology and the law behind cryptocurrency forfeiture. Reach out to Sebastian Rucci for a consultation. We’ll help you navigate the legal process to unfreeze your assets or fight the forfeiture in court. Your bitcoins and tokens are valuable – protect them. Call 330-720-0398 to discuss how we can help recover your seized crypto.

Federal Raids and Asset Forfeiture: What Happens When the Feds Seize Your Property

When a Federal Raid Turns Into Asset Forfeiture

A federal raid by agencies like the FBI, DEA, or IRS is one of the most intense ways a person can encounter asset forfeiture. In a raid, armed agents execute a search warrant at a home, business, or storage facility, looking for evidence of a crime. What many don’t realize is that during these raids, agents often seize property on the spot – not only obvious contraband, but also cash, cars, electronics, safes, and other valuables. If they suspect those assets are connected to illegal activity, the government can hold them and later seek forfeiture. Crucially, this can happen even if the property owner isn’t charged with any crime. The raid itself is tied to an investigation, but seizure does not equal guilt.

Under federal law (for example, 21 U.S.C. § 881 for drug cases), authorities are empowered to confiscate assets believed to be involved in crime. They can seize first and force the owner to fight for return later. This is dramatically illustrated by a recent case out of Beverly Hills, California, where hundreds of people’s property was taken in a single raid:

Case Spotlight: The Beverly Hills Safe Deposit Box Raid

In March 2021, the FBI raided a business called U.S. Private Vaults in Beverly Hills, suspecting it of money laundering. The warrant allowed the FBI to seize the business’s records and inventory any safe deposit boxes at the site – but not to seize box contents outright from box holders who were not implicated. Despite that limitation, agents cracked open about 1,400 private safe deposit boxes and helped themselves to the contents. They walked out with over $86 million in cash and valuables – from gold and jewelry to stacks of cash – much of it belonging to people never accused of any crime.

It later came to light that this was not a one-off mistake by a few agents; it was part of an official plan. Evidence showed the FBI planned from the start to use civil forfeiture to keep the box contents, even though they didn’t tell the judge that when obtaining the warrant. In other words, the raid on the business was also a “smash-and-grab” of private citizens’ property. Many of those citizens were truly innocent – they just rented a safe deposit box there and suddenly had their life savings taken.

The fallout has been significant. Some victims had to submit to FBI investigations or file legal challenges to get their belongings back. A class-action lawsuit ensued, arguing the FBI violated Fourth Amendment rights (freedom from unreasonable searches and seizures). In early 2024, a federal appeals court (Ninth Circuit) issued a blistering ruling: it found the FBI’s actions unconstitutional, saying the seizure of 700+ boxes went beyond what the warrant allowed and violated the Fourth Amendment. The court noted that the FBI’s assurance it would only “inventory” boxes was false, and searching and seizing items from uninvolved parties was unlawful. This case is a prime example of how a federal raid can morph into a wide-ranging forfeiture dragnet – and why courts are now pushing back.

Common Targets in Federal Raids

While the Beverly Hills case was unusual in scale, the pattern of federal raids leading to forfeiture is common. Typical scenarios include:

  • Drug Task Force Raids: The DEA or FBI might raid a suspected drug house or a grow operation. They will seize obvious contraband (drugs) but also cash, cars, firearms, and even homes believed to be bought with drug money or used in the operation.
  • White Collar Crime Raids: In fraud or embezzlement investigations, agents may raid an office or home and seize financial records, computers, and funds from bank accounts (via freeze orders). If you’re an employee or family member, your property might get caught up if commingled with the suspect’s assets.
  • ATF Raids: In firearms or alcohol/tobacco smuggling cases, the ATF might seize not only illegal weapons but also vehicles or real estate tied to the alleged scheme.
  • Federal “Equitable Sharing” Seizures: Sometimes, local police execute a search warrant but partner with federal agencies to use federal forfeiture laws (which are often more government-friendly). Through the Equitable Sharing program, local and federal authorities divvy up the seized assets’ proceeds. This gives locals an incentive to hand raids over to feds for forfeiture purposes a practice critics say encourages “policing for profit.”

Your Rights and How to Respond to a Raid

Enduring a federal raid is traumatic, but it’s important to remember that you have rights before, during, and after the raid:

  • Before (Preparation): You might not expect a raid, but if you’re involved in a high-risk business (e.g. cannabis industry, crypto trading, etc.), it doesn’t hurt to be prepared. Keep records organized – if agents come with a warrant, being able to quickly show documentation of legitimate income or ownership might prevent them from grabbing certain items. Consider having a lawyer on call if you anticipate any legal trouble.
  • During the Raid: If agents arrive with a search warrant, remain calm and polite. Do not interfere physically with their search – that can lead to your arrest. You can (and should) ask to see the warrant; read what areas/things it covers. If they go beyond its scope, politely object on the record (for later use in court). It’s wise to record video of the raid if allowed, or at least take notes of names and actions of officers. You have the right to remain silent – you do not have to answer questions without a lawyer. Definitely do not sign any documents waiving your rights or consenting to forfeiture. Sometimes agents might ask you to sign a form abandoning property – refuse to sign.
  • After the Raid – Seizure Notice: Usually, after seizing property, agents will leave behind or mail you a seizure notice or receipt. This document is crucial. It tells you what was taken and often lists a case number and contact. It should also mention your deadline to contest the forfeiture. Under federal law, once you get a formal notice (which might come days or weeks later), you often have 30 days to respond with a claim. Mark this date and do not miss it.
  • Hire an Attorney Immediately: Time to call a lawyer. A knowledgeable forfeiture attorney can contact the U.S. Attorney’s Office to clarify the status of your property (administrative forfeiture or judicial case, etc.) and negotiate or file claims. If the raid didn’t result in criminal charges against you, you’re looking at a civil forfeiture fight – which in some ways is harder because you don’t get a public defender or speedy trial. Legal counsel is your best bet to get your assets returned.
  • Document Your Losses: Create a detailed inventory of what you believe was seized (compare with the receipt). Note any essential property taken (e.g., work computer, vehicle) – sometimes attorneys can request the most essential items be returned sooner, especially if the impact on you is severe and the item is not inherently illicit.

Fighting Forfeiture After a Federal Raid

Once your property is seized in a raid, recovering it involves formal legal processes:

  • Filing a Claim: As mentioned, file the claim to contest the forfeiture with the agency or court by the deadline. This claim is a simple statement of ownership and intent to fight for the property in court. Filing it shifts the process from an administrative seizure to a court case where the government must prove its case.
  • Court Proceedings: In federal court, the case will be titled something like United States v. [Your Asset] (for example, United States v. $50,000 Cash or United States v. 2018 BMW 3 Series). The burden is initially on the government to show probable cause that the asset is linked to a crime. They often cite the circumstances of the raid, perhaps an affidavit claiming “money found next to drugs” or “car used to transport illicit goods.” Your attorney can challenge this with evidence to the contrary. If you were not charged, that’s a strong point in your favor – emphasize that no criminal charges were filed despite the raid, suggesting a lack of evidence of your wrongdoing.
  • Constitutional Challenges: Cases like the Beverly Hills raid show that courts can be sympathetic to overreach. Your lawyer may argue constitutional violations – e.g., the search or seizure exceeded the warrant (a Fourth Amendment issue), or that keeping your property for an extended time without a hearing violates due process (a Fifth Amendment issue). Even if these arguments don’t win outright, they put pressure on the government to settle or return items.
  • Negotiation and Settlement: In many forfeiture cases, the government may offer to settle – for example, returning some money if you forfeit a portion. Each case is unique; innocent owners will want to push for full return. If the government’s case is weak, they might drop it entirely when faced with a determined opposition.
  • Possible Criminal Charges: Be aware that fighting the forfeiture could sometimes provoke criminal charges if the government feels it has a case and wants to pressure you. Consult with your attorney about this risk. In the vast majority of cases where you truly did nothing wrong, charges never materialize – the worst you face is the civil action itself.

Learnings from the FBI Safe Box Raid: One positive outcome of that saga is awareness. The public and judges are now more aware that innocent people can get swept up in raids. As a result, we may see tighter oversight on how warrants are executed and more skepticism from courts when the government tries to forfeit property from people peripherally connected (or not connected at all) to the target of a raid.

Already, as noted, the Ninth Circuit Court of Appeals not only ruled the safe deposit seizures unconstitutional but also highlighted how the government initially refused to return property to owners not charged, then backtracked. This embarrassment for the FBI and DOJ could make agencies a bit more careful. But ultimately, it’s up to individuals to assert their rights.

Conclusion: Don’t Let a Raid Ruin You

If federal agents have raided your property and taken your possessions, it’s easy to feel helpless – but you do have recourse. The government can’t just keep your stuff without justification. By understanding the process and aggressively contesting an unjust forfeiture, you can level the playing field. The key is timely action and skilled legal representation. Federal raids are daunting, but the law still provides ways for you to get your property back, especially if you’ve done nothing wrong.

Call to Action:

Were you the target of a federal raid or did agents seize your belongings as “evidence” or “proceeds” of a crime you’re not even charged with? Don’t wait and hope for the best – take action. Contact Sebastian Rucci, a veteran asset forfeiture attorney, to fight for the return of your property. We know the tactics federal agents use and how to challenge them in court. Call 330-720-0398 for a confidential, free consultation and get the experienced advocacy you need to reclaim what’s yours.

Innocent Owner Defense in Asset Forfeiture: Protecting Your Property Rights

What Is the Innocent Owner Defense?

One of the most paradoxical aspects of civil asset forfeiture is that property can be taken from people who are completely innocent. The law permits the government to forfeit property if it’s connected to a crime – even if the owner of the property isn’t the person who committed the crime. The innocent owner defense is a legal provision that allows an owner to get their property back by proving they had no knowledge of, nor consented to, the illegal use of their property. In theory, this defense is a crucial protection: it recognizes that “innocent until proven guilty” should extend to people’s property as well.

For example, imagine you lend your car to a friend, and unbeknownst to you they use it to transport drugs. If the car is seized, you, as the owner, could invoke the innocent owner defense by showing you had no idea about your friend’s activities. Federal law (18 U.S.C. § 983(d)) and many state laws have clauses that say an innocent owner’s interest “shall not be forfeited” if they can prove their innocence. Sounds fair, right?

The Harsh Reality: In Practice, You Must Prove Innocence

Unfortunately, invoking this defense is easier said than done. Under most civil forfeiture laws today, the burden is on the property owner to prove they are innocent – effectively a guilty-until-proven-innocent scenario. This flips the typical script of American justice. You aren’t presumed innocent; instead, you must convince the court that you did not know about the illicit use of your property. Proving a negative (“I didn’t know something”) is inherently difficult.

Worse, innocent owners face procedural hurdles that can trip them up before they ever get a hearing:

  • Short Deadlines: Owners often must file a claim or response within a very short window after the seizure (sometimes just 10-20 days, depending on the jurisdiction). For instance, in Wayne County, Michigan (Detroit) an owner had only 17 days to file a claim, and in Albuquerque just 10 days (plus a $50 filing fee). If you miss the deadline or paperwork is done incorrectly, your property is automatically forfeited by default. There is no second chance.
  • Cost and Complexity: As a property owner blindsided by a seizure, you might not even understand what an innocent owner claim is without legal counsel. Hiring an attorney costs money – and ironically, the police might have just taken a chunk of your assets, making it harder to afford a lawyer. Public defenders are generally not available in civil cases, since no criminal charge is filed. This leaves many innocent owners struggling to navigate a confusing legal process on their own.
  • Pressure to Settle: Prosecutors may pressure owners to “settle” by, say, forfeiting part of the property or paying a penalty to get the rest back. Faced with months without a car or cash (and bills piling up), an innocent owner might feel compelled to accept a bad deal just to resolve the matter, even if they’ve done nothing wrong.

Real-World Examples of Innocent Owners

The innocent owner problem isn’t just theoretical – it’s widespread. A notorious U.S. Supreme Court case, Bennis v. Michigan (1996), exemplifies how harsh forfeiture can be: A woman’s car was forfeited by the state after her husband used it (without her knowledge) to solicit a prostitute. The wife – an innocent owner – lost her vehicle despite having committed no crime. The Supreme Court upheld that forfeiture, essentially saying that her innocence did not exempt the car from being taken. This case set a troubling precedent.

In many cities, a large portion of seized property comes from third-party owners:

  • Detroit, MI: In 2017 alone, Wayne County (Detroit) forfeited almost 400 cars without charging anyone with a crime. Many of those vehicles belonged to someone other than the person allegedly involved in wrongdoing (for example, a parent’s car taken because of a child’s arrest).
  • Albuquerque, NM: Before New Mexico reformed its law, Albuquerque’s forfeiture program seized so many cars from uninvolved owners that about half of all cars seized belonged to someone other than the offender (often a family member). This program was later struck down by a federal court for violating due process – because it effectively forced owners to prove their innocence to get their car back.

These examples underscore that innocent owners aren’t rare outliers; they are a sizable share of forfeiture victims. Anytime property is used by someone else – be it a child, spouse, friend, tenant, or employee – that property is at risk of seizure even if the actual owner did nothing wrong.

Legal Developments: A Mixed Bag

There is growing recognition by courts and lawmakers that the innocent owner burden is unjust. Some positive developments include:

  • State Reforms: A few states have changed their laws to help innocent owners. According to a 2020 report by the Institute for Justice, only 13 states and D.C. put the burden of proof on the government to show the owner knew of the crime. But reforms are slowly spreading. For example, Iowa, Pennsylvania, and Wisconsin recently shifted the burden fully to prosecutors – meaning owners in those states are now presumed innocent and the state must prove otherwise. Maryland and Ohio also improved protections for certain property types. Still, in a majority of states (and under federal law), innocent owners continue to bear the burden.
  • Supreme Court in 2024 (Culley v. Marshall): In May 2024, the U.S. Supreme Court weighed in on a procedural aspect of the innocent owner issue. In Culley, two women had their cars seized in Alabama after other people (who had borrowed the cars) were arrested for drugs. The women – as innocent owners – had to wait over a year without their vehicles before any hearing. They argued that due process required a prompt post-seizure hearing so they could quickly assert their innocent owner defense. The Supreme Court, however, ruled 6-3 against them: it held that the Constitution does not require an early, separate hearing for innocent owners, as long as there is a “timely” final forfeiture hearing. In other words, innocent owners might have to wait many months to get their day in court. This was a disappointment for property rights advocates, though notably several Justices expressed concern about civil forfeiture abuses in concurring opinions. The ruling highlighted that while the Court acknowledged problems, it wasn’t ready (yet) to mandate stronger due process for owners.

The takeaway: the legal system is aware of the innocent owner dilemma, but change is gradual. Some federal legislation has been proposed (like the FAIR Act – see the Due Process topic) to shift burdens and make it easier for innocent owners to recover property, but as of 2025 these reforms are not law.

How to Fight as an Innocent Owner

If you find yourself in the awful situation of being an innocent owner whose property was seized, here’s how you can protect your rights:

  1. Act Fast – File Your Claim: As mentioned, the timelines are short. The seizure notice or legal paperwork will specify how and when to file an “innocent owner claim” or similar petition. Do not miss that deadline, even if you are trying to negotiate – file the claim to preserve your rights.
  2. Gather Proof of Innocence: Start collecting any evidence that shows your lack of knowledge or involvement. This could include messages or emails showing you did not condone the illicit use, affidavits from people who can attest you were unaware, etc. For example, if your car was taken because a friend had drugs in it, get statements from other friends/family confirming you had no knowledge, and any evidence of your friend’s independent activities.
  3. Demonstrate Legitimate Ownership: Also prove the property is actually yours (title, registration, receipts). If the property was borrowed or used without permission, say so.
  4. Hire Experienced Counsel: Innocent owner cases can be complex. A knowledgeable attorney can navigate the process, file the necessary claims, and represent you in hearings. They can also negotiate with prosecutors – sometimes, showing strong evidence of innocence early may convince the government to drop the forfeiture without a protracted fight.
  5. Don’t Be Intimidated: Prosecutors might argue you “should have known” about the criminal use, especially in cases involving spouses or family. Stand firm if you truly didn’t know. The law often requires actual knowledge or consent – mere ownership or relationship isn’t enough. There have been cases where courts sided with owners who credibly showed they were in the dark. For instance, some states require prosecutors to prove the owner knew or was willfully blind; learn what standard applies in your case.

Conclusion: Protecting the Innocent

The innocent owner defense is supposed to protect those caught in the forfeiture net by mistake or misfortune. While it exists on paper, making it work for you requires jumping through legal hoops and proving a negative. If your property was seized and you had no involvement in the alleged crime, do not be discouraged. Many innocent owners do eventually get their property back – but it often takes persistence and legal help. Remember that the burden may be unfairly placed on you, but with a solid case and the right strategy, you can overcome it.

Call to Action:

Has your car, money, or other property been seized even though you did nothing wrong? You shouldn’t have to pay for someone else’s actions. Contact Sebastian Rucci – an experienced asset forfeiture attorney – to evaluate your innocent owner claim. We will fight to shift the burden back where it belongs: on the government. Call 330-720-0398 today for a free case review and let us help reunite you with your property.

Airport Cash Seizures: What to Do if TSA or DEA Takes Your Money

Airport Cash Seizures: What’s Happening?

Travelers flying with large sums of cash are increasingly encountering an alarming problem: airport cash seizures by federal agencies. Under civil asset forfeiture laws, agencies like the Drug Enforcement Administration (DEA) or Customs (a part of the Department of Homeland Security) can seize money from passengers without charging them with a crime. In fact, DHS agencies seized over $2 billion in cash at U.S. airports between 2000 and 2016, and in most cases the owners were never accused of any wrongdoing. This means you could have your money taken simply because an agent suspects it might be linked to illicit activity – even if you’ve committed no crime.

Why Do TSA or DEA Seize Cash at Airports?

There are a few common triggers for cash seizures at airports:

  • Failure to Report Large Amounts: If you carry more than $10,000 in cash on an international trip and don’t file the required currency report, Customs can seize it for a mere paperwork violation. About half of airport currency seizures are for nothing more than not filing the form when leaving or entering the U.S..
  • “Suspicious” Travel Patterns: The DEA has run programs targeting travelers who fit certain profiles. For example, one now-suspended program had airline staff tip off agents whenever someone bought a last-minute ticket, which agents took as a red flag to confront the passenger and search for cash. Traveling one-way, with small luggage, or other arbitrary factors might draw scrutiny.
  • Canine Alerts or Intel: Drug-sniffing dogs or interagency intel can lead TSA to flag luggage containing cash. Even if the dog simply detects residual odors (not illegal currency), agents might detain your money on suspicion.

Once cash is found, agents often assume it’s drug money or evidence of crime. Critically, you don’t have to be charged or convicted – the law allows taking the property first, and you must later prove it’s legitimate to get it back.

Recent Changes: DOJ Suspends a Controversial Program

In late 2024, there was a positive development for travelers’ rights. The Department of Justice suspended the DEA’s airport cash seizure program after a watchdog investigation found serious legal and ethical issues. The DOJ’s Inspector General reported that DEA agents weren’t even following the agency’s own policies for “consensual encounters” in airports, creating “significant legal risks”. Critics have long argued that such programs infringe on constitutional rights and create perverse profit incentives for law enforcement.

Notably, the Institute for Justice a civil liberties group – has a pending lawsuit against the DEA and TSA challenging airport seizures. The suspension of the DEA program in November 2024 is a victory for reformers, suggesting authorities acknowledged the abuse. However, TSA and other agencies can still seize cash during routine screenings or customs checks, so travelers must remain vigilant.

Know Your Rights When Traveling with Cash

If you choose to fly with a significant amount of cash, it’s important to understand and assert your rights:

  • Domestic Travel: TSA officers are primarily for security (weapons/explosives) and are not supposed to confiscate cash just because you have a lot. There’s no law capping how much cash you can carry on domestic flights. However, TSA sometimes alerts law enforcement if they find a “suspicious” sum. Politely ask if you are free to leave. Unless they have a warrant or probable cause, you can decline any further search.
  • International Travel: You must declare if carrying over $10,000 when leaving or entering the U.S. (use FinCEN Form 105). If you don’t and they find your money, it will almost certainly be seized on the spot for violation of reporting laws. Always file the report to avoid this trap.
  • Probable Cause and Consent: DEA agents or local police at airports often rely on “consent” to search bags or interrogate you. You have the right to refuse consent to a search if they lack a warrant. Be respectful but firm. Ask if you are being detained or if you’re free to go.
  • Stay Calm and Don’t Lie: If questioned, remain calm. Lying to federal agents is a crime on its own. It’s better to politely decline to answer questions than to provide false information.

What To Do If Your Cash is Seized

Having your money taken by authorities is frightening, but you can fight to get it back. Here are the steps to take if TSA, DEA, or customs agents seize your cash:

  1. Get Documentation: Make sure you receive a receipt or seizure notice paperwork before you leave. This should detail the amount taken and which agency is responsible. It often includes instructions for filing a claim.
  2. Consult an Attorney Quickly: Deadlines are crucial. In federal civil forfeiture cases, you typically have as little as 30 days to file a claim to contest the seizure. Failing to act in time means you forfeit the money by default. An experienced asset forfeiture attorney can help prepare the claim and any required response.
  3. File a Claim for Court Action: By filing a verified claim of ownership, you force the government to file a forfeiture lawsuit in court (instead of summary forfeiture). This gives you a chance to argue your case before a judge. Remember, under civil forfeiture, you carry the burden to prove the cash is from legitimate sources, which can be challenging. Provide any proof (bank withdrawal records, business receipts, etc.) that the money is lawfully yours.
  4. Request Return of Funds: In some instances, you can file a petition for remission or mitigation with the agency, essentially asking for discretionary return of the money. However, this doesn’t give you a court hearing and relies on the agency’s mercy – often not fruitful if you truly did nothing wrong. It’s usually better to file a claim and go to court.
  5. Fight the Forfeiture in Court: If your case goes to court, your attorney can argue there was no probable cause to seize the cash, or that you are an “innocent owner.” Many airport seizure cases never accompany any criminal charge, which you can point out as evidence of the weak basis for the seizure. Courts have occasionally criticized prolonged seizures with no charges as violations of due process (though a recent Supreme Court ruling limited some protections – see our Due Process article for details).

Protect Yourself: Tips for Flying with Cash

The safest approach is to avoid traveling with large sums of physical cash if possible use electronic transfers or cashier’s checks for big transactions. If you must carry cash:

  • Document the Source: Have paperwork (like withdrawal slips, sale invoices, etc.) showing where the cash came from. While not legally required, it may help prove legitimacy on the spot.
  • Consider Alternatives: Money orders or prepaid travel cards can be easier to explain than a brick of cash.
  • Be Polite and Know the Law: If stopped, you can mention that carrying cash is not a crime and that TSA has no regulations against it. Ask if you are free to go. Sometimes showing confidence in your rights deters further hassle.
  • Travel with a Witness: If possible, having someone with you can later serve as a witness to the encounter in case of any dispute over what happened. Also, record the interaction on your phone if it’s legal in that jurisdiction – a recorded conversation can be valuable.

Conclusion: Stand Up for Your Money

Airport cash seizures remain a risk, but recent policy changes show that public pressure is prompting reform. If your money is seized at an airport, don’t assume it’s gone for good. You have the right to fight back, and many people do successfully recover their funds with legal help. Remember, being suspected is not the same as being guilty, and the government must ultimately justify taking your property. For the best chance of recovery, act quickly and get professional legal assistance.

Call to Action:

If TSA or DEA agents have taken your cash, you’re not alone – and you have options. Contact Forfeiture Attorney Sebastian Rucci for a free consultation on how to reclaim your seized money. With 27+ years of experience in federal seizures, Sebastian can help you assert your rights and fight the forfeiture in court. Don’t let the government keep your hard-earned money without a fight-call 330-720-0398 today for help recovering your property.

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