Seizures of Cryptocurrency by FBI for Forfeiture
The FBI’s Virtual Assets Unit is freezing and then seizing cryptocurrencies for a wide range of crimes, including crypto-investment fraudulent schemes such as pig-butchering and romance scams, child exploitation, ransomware cash-outs, hacks, theft, terrorism, and money laundering.
The goal of these seizures is to financially strangle illicit networks. Unfortunately, innocent cryptocurrency owners are often caught up in the FBI’s net when it is cast too widely.
Attorneys for FBI Crypto Seizures for Forfeiture
If your lawfully earned cryptocurrency is swept up in a civil asset forfeiture proceeding involving the FBI, contact an experienced attorney at Sammis Law Firm. Our crypto‑savvy forfeiture attorneys can help you protect your assets.
We can help you document why the seized cryptocurrency is not tainted, why there is no connection to the alleged criminal activity, and why the account holder of the wallet is an innocent owner. We can assist you in filing a verified claim for court action with the agency that seized the cryptocurrency.
We are especially familiar with the tactics used by the FBI to seize crypto for forfeiture from innocent owners and how to fight back.
Call 813-250-0500 to schedule a consultation with an attorney.
The History of FBI Seizures of Crypto for Forfeiture
The FBI began focusing on seizing crypto for forfeiture with the creation of its Virtual Assets Unit (VAU), a joint project of the Cyber Division and Criminal Division led by Unit Chief Patrick Wyman. The FBI’s Virtual Assets Unit employs full-time blockchain forensics agents, intelligence analysts, forensic accountants, policy lawyers, and contract managers. National asset specialists are embedded in FBI field offices throughout the United States.
Today, the FBI’s Virtual Assets Unit provides on‑demand tracing and seizure support to every FBI case team. The unit writes evidence‑handling policy for digital assets, negotiates bureau‑wide licenses for commercial blockchain‑analytics platforms, and trains FBI agents to recognize issues related to crypto seizures.
The VAU collaborates with the FBI’s Transnational Organized Crime and Financial Crime Sections. For example, Operation Level Up was created in January 2024 to identify victims of cryptocurrency investment fraud and notify them of the scam. The operation was initiated with the support of agents from the FBI and the United States Secret Service (USSS).
The FBI knows that money launderers use darknet “tumbling” services to evade law‑enforcement tracing efforts and blockchain analytics, although laundering the funds often requires less effort. The VAU approaches cryptocurrency as a facilitator, not a crime in itself. When investigators uncover a wallet address, VAU teams take the following actions:
- run on‑chain tracing with commercial tools (TRM Labs, Chainalysis, etc.);
- map the flow to exchanges, mixers, DeFi pools, and real‑world endpoints; and
- issue emergency freeze letters or draft seizure warrants for U.S.‑based exchanges.
FBI agents then use civil or criminal asset forfeiture proceeds, even when the suspect is offshore, by demonstrating probable cause that the coins can be traced back to a criminal offense committed in the United States.
Federal agencies, such as the FBI, Homeland Security Investigations (HSI), IRS-Criminal Investigation, and the Secret Service, collaborate to share information and synchronize freezes of cryptocurrency across different jurisdictions.
FBI Seizure of Tether (USDT) stored in Virtual Currency Addresses
When the FBI has an administrative seizure of Tether (USDT) stored within or associated with a virtual currency address or account in the custody of Tether Holdings Limited dba Tether Operations Limited, the notice will list the value of the USDT, the date it was seized, the address where the claim for forfeiture should be filed, and the deadline for filing the verified claim. The notice might also list the addresses of the accounts.
Conclusion
If the FBI seized your property, a civil asset forfeiture lawyer can help you respond appropriately. We can help you prove the lawful origin of your crypto by gathering KYC records, exchange receipts, tax returns, and wallet screenshots that show a clean purchase history.
We can force the agency to turn over its evidence supporting its theory that probable cause exists to support the seizure. When their evidence is lacking, we can file a motion for return of property under Rule 41(g) or a motion to dismiss the complaint for forfeiture.
This article was last updated on Tuesday, July 22, 2025.