Florida Seizing Cryptocurrency for Forfeiture – What Can Go Wrong?
What happens if local law enforcement agencies in Florida seize cryptocurrency from foreign nationals and overseas companies, despite the absence of legal authority to do so? Leslie Sammis, an attorney with Sammis Law Firm, recently resolved one such case. As a result of her efforts, the Volusia County Sheriff’s Office was forced to return everything it seized to her innocent client, plus pay the attorney fees.
A detective with the Volusia County Sheriff’s Office obtained a sealed seizure warrant from Circuit Court Judge Joan Anthony to seize 1.19121 BTC from a business owner’s account with Kraken dba Payward Ventures Inc., by ordering Kraken to transfer that cryptocurrency to a law enforcement-controlled cryptocurrency wallet address maintained by the Florida Department of Law Enforcement. It appears this seizure warrant was never assigned a case number or filed with the clerk of court. The order provided, in part:
This court further orders that the Volusia Sheriff’s Office shall forthwith sell the 1.19121 BTC, upon being transferred from the aforementioned Kraken dba Payward Ventures Inc. accounts and be converted into US currency. The US currency is to be returned to the victim after all costs and fees incurred for the transfer.
NOW THEREFORE, the contents of this Warrant and Affidavit on support thereof are placed under seal.
Ordered this 9th day of April, 2025.
Circuit Judge, in and for Volusia County, Florida
Joan Anthony
After the Volusia County Sheriff’s Office seized the cryptocurrency, it intended to send some of those funds to the authorities in Wisconsin to cover the losses of another victim (with the extra money going to the authorities in Wisconsin). Since Wisconsin had no cryptocurrency wallet that could receive the funds, Volusia County agreed to sell some of the cryptocurrency. Then Volusia County sent a check to the authorities in Wisconsin for $95,030.59 (Ninety-Five Thousand and Thirty Dollars and Fifty-Nine Cents).
After our office explained all the reasons why we thought this seizure was illegal, why our client was actually innocent, and the legal action we intended to take to correct the problem. As a result, the Volusia County Sheriff’s Office agreed to do three things:
- transfer the portion of cryptocurrency held by the authorities in Florida back to our client’s wallet;
- retrieve the U.S. Currency sent to Wisconsin in the amount of $95,030.59 (Ninety-Five Thousand Thirty Dollars and Fifty-Nine Cents) and return that to our client; and
- pay attorney fees to Sammis Law Firm.
Ironically, one of the victims was duped into sending funds to fraudsters claiming to be with the “Board of Governors of the Federal Reserve System,” who sent the victim a fake letter entitled “Notice for Seizing Your Assets and Social Security Number.” The letter alleges that the Law Enforcement Department of the Federal Reserve System can seize the victim’s account that the fraudster knew contained more than $300,000, according to the letter. The letter claimed they were keeping a close watch on the victim with the help of the Federal Bureau of Investigation (FBI). The victim was told to follow the protocols of the “FRS Department.” Obviously, this was a scam. IF YOU SEE SUCH A LETTER, KNOW IT IS A SCAM. However, since the government does forfeit property in unusual ways, this ridiculous scam was unfortunately successful at tricking the victim.
The authorities investigated the fraud and sought to assist the victim in recovering their property (plus the rest of the funds would go to the agency). But in the process, these agencies created another victim living overseas who saw his company’s entire account seized, even though only a tiny amount of the victim’s property could allegedly be traced to that completely innocent business account.
Welcome to the strange world of civil asset forfeiture.
Example of Civil Asset Forfeiture Seizure in Florida
The attorneys at Sammis Law Firm were first contacted on May 7, 2025, by a business owner of an EU-licensed brokerage. Law enforcement officers seized his company’s cryptocurrency account with Kraken dba Payward Ventures Inc., through seizure orders issued in Volucia County, FL, and Waupaca County, Wisconsin. The account was held in the company’s name. The client provided us with a copy of the freeze and seizure orders issued from each location. We agreed to take the case in Volusia County, FL.
The business owner had already contacted detectives in Waupaca County, Wisconsin, and the Volusia Sheriff’s Office in Florida.
When we took on the case, we first reached out to the attorney for the Volucia County Sheriff’s Office, who handles civil asset forfeiture cases for the agency, on May 12, 2025. We explained what evidence we had uncovered during our investigation.
Our investigation showed that on March 28, 2025, our client was notified by Kraken that their account had been frozen with all trading and withdrawal services suspended. That account had just over $450,000 of crypto assets, which later rose to over $700,000 worth of crypto. Shortly thereafter, Kraken gave the business owner instructions to contact a detective with the Waupaca County Sheriff’s Office in Waupaca, WI.
After contacting the detective, the client was informed that a fraud had been committed at a kiosk in that location, resulting in a loss of USD 20,000. The transaction ID of the suspicious transaction was provided. The client provided information demonstrating how the transaction occurred and that there was no way the client could have been aware of any problem.
The client continued requesting further details from Kraken. Despite the client’s efforts, Kraken was unhelpful given their commitment to appease the authorities. On April 3, 2025, Kraken finally confirmed the tx ID referenced by Detective Kincaid as part of the freeze. The client was able to identify the client linked to on their platform and then sent more information to Detective Kincaid.
On April 10, 2025, the client sent the detective even more information, including additional details about the company, such as its corporate structure and all relevant corporate documents. The detective sent a response, finally confirming the transaction ID that was flagged and providing a BTC purchase slip, allegedly where the fraud originated. The value was for USD20,000 (BTC 0.16196522).
The client continued to reach out to the detective and Kraken, explaining that they had isolated the client account linked to the flagged transaction. The flagged transaction is the one that was traced to their wallet and then onto the Kraken exchange. The value of this transaction is ~0.93 BTC, which is a lot higher than the alleged fraudulent transaction.
On April 15, 2025, the client was contacted by a detective in Volucia County, FL, who was investigating a fraud linked to the same wallet. He asked for further information. The client immediately responded with a comprehensive data pack containing all the requests and requested a video call to discuss the details.
On April 18, 2025, the client noticed that BTC had been debited from their frozen account. Kraken informed us that two (2) seizure warrants had been issued against their account, which they complied with. The client was not informed until after the assets left their account and after they demanded an explanation from Kraken. They spent hours requesting copies of all the warrants and associated information, but received nothing else from Kraken or either of the detectives.
The BTC seized was 0.93733 BTC for Waupaca County and 1.19121 BTC for Volusia County. The only evidence supplied to them regarding the alleged fraud that triggered the seizure was for USD20k (BTC 0.16196522).
Using specialized anti-fraud blockchain tracing software to scan the transactions received, we found no connection between the alleged fraud and their wallet on Kraken. The freezing of their account trapped almost $700,000 of USD of assets and suspended the use of their accounts.
After contacting the Volucia County Sheriff’s Office, we were told that this was not a “civil forfeiture case.” Instead, it was a seizure pursuant to a seizure warrant and order by the Financial Crimes Unit. We were asked to contact Captain Paul Kammerer.
Florida’s Sealed Seizure Warrant for Crypto with No Case Number
Captain Paul Kammerer eventually provided us with a seizure warrant from Volusia County, allegedly signed by Circuit Judge Joan Anthony, which provided:
SEIZURE WARRANT
IN THE CIRCUIT COURT OF THE SEVENTH JUDICIAL CIRCUIT,
IN AND FOR VOLUSIA COUNTY, FLORIDA
In the Circuit Court, In and for Volusia County, Florida
In the name of the State of Florida
To: Michael J. Chitwood, Sheriff of Volusia County, Florida, and/or any one or more of his duly sworn Deputies, and/or R.J. Larizza, State Attorney for the Seventh Judicial Circuit of the State of Florida, and/or any one or more of his duly sworn Investigators:
Whereas complaint on oath and in writing, supported by affidavit, having been made this day before the undersigned: Circuit Judge Joan Anthony.
And whereas, said facts made known to me have caused me to certify and find that there is probable cause to believe that certain laws have been or are being violated in or on certain premises and the curtilage thereof, or that evidence of the violation of certain laws is being kept in or on certain premises or curtilage thereof, in Volusia County, Florida being known and described as follows: Kraken dba Payward Ventures Inc. accounts/cryptocurrency wallet(s) described as: 3B16…A and/or any/all yet unknown cryptocurrency wallet(s)/accounts associated with the account(s):
Account Holder: _______DOB: _____Address: _____Email: ______Mobile number: _____User ID: ______….
Being the account occupied by or under the control of Kraken. Any and other yet unknown individual/bank/group. And there is now being kept in or on said premises certain:
- US currency
- Funds
- Cryptocurrency
- Cryptocurrency wallets
- Statements/Any and all account(s) documents. Account holder’s any and all information to include photo ID, address, phone number, social security number and any and all identifiers on file. Such property being described below in paragraphs 1 through 8 and hereinafter collectively referred to as “the Property.”
- Names (including subscriber names, usernames, and screen names), addresses (including mailing addresses, residential addresses, business addresses, and e-mail addresses), telephone numbers, and other contact information provided by the customer to establish or maintain an account or communication channel, an account number or identifier, length of service (including start date), and types of services utilized:
- Customer due diligence records, including documents (with associated metadata) submitted by the customer as evidence of identity or residence.
- Information related to all bank, credit, debit, or other financial accounts related to identified customer (including any credit card or bank account numbers), including any used as means or source of payment for service. The
- Records of session times and durations, and user agent information and temporarily assigned network addresses (such as Internet Protocol (“IP”) addresses) associated with those sessions.
- Account notes used by the business to manage or document communication with customer or other notes used for similar purposes; and
- All transaction records, including current balances, transaction IDs, addresses utilized deposit and withdrawal of digital currency, and order history.
- All money/currency, digital currency, cryptocurrency, digital assets, credits, and funds, contained within each account/wallet address.
- All cryptocurrency contained within the wallet(s) from the date of service until 10 days after the warrant is served.
Which is being kept and used in violation of the Laws of the State of Florida, to wit:
Organized Scheme to Defraud in violation of F.S.S 817.034
Grand Theft in violation of F.S.S 812.014(2)(c)(2)
Money Laundering in violation of F.S.S. 896.101
And whereas the facts establishing the grounds for this application being set forth in the affidavit of Detective Devon Sawicki, which is attached and incorporated herein by reference.
NOW THEREFORE, this warrant is issued pursuant to Florida Statute s. 92.605. A response is due within 10 business days of receipt of this warrant unless a longer time is stated herein. Kraken DBA Payward Ventures, Inc. disclose responsive data, if any, by sending it to, Detective Devon Sawicki, Volusia Sheriff’s Office, Investigative Services Section, 1330 Indian Lake Rd, Daytona Beach, FL 32124 using the US Postal Service or another courier service, notwithstanding 18 U.S.C. 2252A or similar statute or code, and/or via e-mail at Dsawicki@VolusiaSheriff.gov.
NOW THEREFORE, in accordance with Florida Statute 934.23 and 18 U.S.C. 2703(g), you, with such lawful assistance as may be necessary, are hereby commanded, in the daytime or in the nighttime, or on Sunday, as the exigencies of the occasion may demand, to search the above described electronic data/accounts for the Property and if the same or any part thereof be found, you are hereby authorized to seize and secure same, giving proper receipt therefore and delivering a completed copy of this warrant to the person or entity in control of the electronic data, and making a return of your doings under this warrant within ten (10) days of the date hereof, and you are further directed to bring said property so found before the Court having jurisdiction of this offense to be used in the prosecution of persons violating this offense and thereafter to be disposed of according to law.
NOW THEREFORE, YOU ARE HEREBY COMMANDED to seize, secure, and examine all money/currency, digital currency, cryptocurrency, digital assets, credits, and funds, contained within each account/wallet address, held within or assigned to the identified account(s), and transfer the digital assets to the custody of the investigating law enforcement agency (Volusia Sheriff’s Office), to the Law Enforcement Agency wallet accordingly:
Transfer from User ID _______under the names of ______ and _______, email address: _____, mobile number ______, to the Volusia Sheriff’s Office wallet addresses: Transfer 1.19121 BTC to Law Enforcement controlled wallet address: Bitcoin on Bitcoin Network: 3BEY….R
This court further orders that the Volusia Sheriff’s Office shall forthwith sell the 1.19121 BTC, upon being transferred from the aforementioned Kraken dba Payward Ventures Inc. accounts and be converted into US currency. The US currency is to be returned to the victim after all costs and fees incurred for the transfer.
NOW THEREFORE, the contents of this Warrant and Affidavit on support thereof are placed under seal.
Ordered this 9th day of April, 2025.
Circuit Judge, in and for Volusia County, Florida
Joan Anthony
Questions for the Seizing Authorities in Florida
After receiving a copy of this order, on May 23, 2025, we asked Captain Kammerer to tell us:
- What is the case number assigned to this matter?
- Can you show me the return and inventory form?
- Was the seized bitcoin sold?
- How much in U.S. Currency was obtained?
- What was paid to each “victim”?
- What happened to the remaining funds after the “victims” were paid?
- Can you show me proof of what happened after you obtained this warrant?
- Did you ever notify the owner of the account?
- Did you ever issue a notice of seizure or provide it to the owner of the account?
- What is the case number?
- Are you telling me this was seized and there was never a case number or application for probable cause filed in the clerk’s office?
- In other words, no attempts were made to comply with the Florida Contraband Forfeiture Act?
We later made a public records request pursuant to Chapter 119, Florida Statutes, to the Volusia County Sheriff’s Office for the following documents:
“for any other seizure warrants that purport to allow the seizure of cryptocurrency directed to your agency. And I am also requesting all records in this case related to this seizure from my client, including but not limited to:
- any attachment showing the crypto tracing attached to the affidavit for the seizure warrant;
- any documents showing the crypto tracing;
- the return of service and inventory;
- all documents provided in response to the seizure warrant;
- and any records related to the sale of his property;
- any documents showing what happened to those funds seized; and
- all of the emails to and from Dsawicki@volusiasheriff.gov form 3/29/2025 until 6/3/2025.
The Wisconsin Order to Seize Cryptocurrency for Forfeiture
We also received a copy of the orders from Wisconsin, which was roughly a mirror image of the seizure warrant in Florida. The Wisconsin order provided:
Suspect: Incident#: W25-0XXXX
Court Case#: Sealed: __ Yes X No
IN THE MATTER OF A SIEZURE FOR FUNDS HELD BY:
Payward Interactive, Inc.
106 E. Lincoln Way, 4th Floor
Cheyenne, WY 82001
United States
email: lawenforcement@kraken.com
Complaint Number: W25-0XXXX
ORDER GRANTING SIEZURE WARRANT, CONTENT OF COMMUNICATIONS OR OTHER RECORDS PURSUANT TO WIS. STAT. § 968.375(3) FINDINGS AND ORDERS
In the Circuit Court, In and for Waupaca County, Wisconsin
In the name of the State of Wisconsin
You are hereby required to provide to Detective Sergeant Steven Kincaid, and the Waupaca County Sheriff’s Office, the following records not later than April 25, 2025, unless such time is extended by order of this court:
And whereas, said facts made known to me have caused me to certify and find that there is probable cause to believe that certain laws have been or are being violated in or on certain premises and the curtilage thereof, or that evidence of the violation of certain laws is being kept in or on certain premises or curtilage thereof, in Waupaca County, Wisconsin being known and described as follows: [wallet address] and/or any/all yet unknown cryptocurrency wallet(s)/accounts associated with the address/account(s):
Being the account occupied by or under the control of:
Payward Interactive, Inc.
106 E. Lincoln Way, 4th Floor
Cheyenne, WY 82001
United States email: lawenforcement@kraken.com
And there is now being kept in or on said premises certain:
- US currency
- Funds
- Cryptocurrency
- Cryptocurrency wallets
- Statements/Any and all account(s) documents. Account holder’s any and all information to include photo ID, address, phone number, social security number and any and all identifiers on file. Such property being described below in paragraphs 1 through 8 and hereinafter collectively referred to as “the Property.”
- Names (including subscriber names, usernames, and screen names), addresses (including mailing addresses, residential addresses, business addresses, and e-mail addresses), telephone numbers, and other contact information provided by the customer to establish or maintain an account or communication channel, an account number or identifier, length of service (including start date), and types of services utilized;
- Customer due diligence records, including documents (with associated metadata) submitted by the customer as evidence of identity or residence.
- Information related to all bank, credit, debit, or other financial accounts related to the identified customer (including any credit card or bank account numbers), including any used as means or source of payment for service.
- Records of session times and durations, and user agent information and temporarily assigned network addresses (such as Internet Protocol (“IP”) addresses) associated with those sessions.
- Account notes used by the business to manage or document communication with the customer or other notes used for similar purposes; and
- All transaction records, including current balances, transaction IDs, addresses utilized in deposit and withdrawal of digital currency, and order history.
- All money/currency, digital currency, cryptocurrency, digital assets, credits, and funds, contained within each account/wallet address.
- All cryptocurrency contained within the wallet(s) from the date of service until 10 days after the warrant is served.
Which is being kept and used in violation of the Laws of the State of Wisconsin, to wit:
Theft by Fraud in violation of § 943.20(1)(d)
Money Laundering in violation of § 943.895
And whereas the facts establishing the grounds for this application being set forth in the affidavit of Detective Sergeant Steven Kincaid, which is attached and incorporated herein by reference.
NOW THEREFORE, this warrant is issued pursuant to Wisconsin State Statute § 968.375(3). A response is due within 10 business days of receipt of this warrant unless a longer time is stated herein.
Payward Interactive Inc. disclose responsive data, if any, by sending it to, Detective Sergeant Steven Kincaid, Waupaca County Sheriff’s Office, Investigative Division, 1402 East Royalton St., WI 54981 using the US Postal Service or another courier service, notwithstanding 18 U.S.C. 2252A or similar statute or code, and/or via e-mail at steven.kincaid@co.waupaca.wi.us.
NOW THEREFORE, in accordance with Wisconsin Statute § 968.375(3) and 18 U.S.C. 2703(g), you, with such lawful assistance as may be necessary, are hereby commanded, in the daytime or in the nighttime, or on Sunday, as the exigencies of the occasion may demand, to search the above described electronic data/accounts for the Property and if the same or any part thereof be found, you are hereby authorized to seize and secure same, giving proper receipt therefore and delivering a completed copy of this warrant to the person or entity in control of the electronic data, and making a return of your doings under this warrant within ten (10) days of the date hereof, and you are further directed to bring said property so found before the Court having jurisdiction of this offense to be used in the prosecution of persons violating this offense and thereafter to be disposed of according to law.
NOW THEREFORE, YOU ARE HEREBY COMMANDED to seize, secure, and examine all money/currency, digital currency, cryptocurrency, digital assets, credits, and funds, contained within each account/wallet address, held within or assigned to the identified account(s), and transfer the digital assets to the custody of the investigating law enforcement agency (Waupaca County Sheriff’s Office), to the Law Enforcement Agency wallet accordingly: Transfer 0.93733 BTC from wallet identified by 3BEY….R through the Bitcoin network, to the Volusia Sheriff’s Office wallet address provided by Volusia County Florida under mutual aid agreement, which represents the total loss to the victim. This court further orders that the Waupaca County Sheriff’s Office shall forthwith sell the 0.93733 ВTC, upon being transferred from the aforementioned Payward Interactive, Inc., (Kraken) account and be converted into US currency. The US currency is to be returned to the victim after all costs and fees incurred for the transfer.
Dated at Waupaca, Wisconsin, this 14th day of April, 2025.
The Hon. Viciki L. Clussman
Waupaca County Circuit Court Judge, Branch II
Bogus Mutual Aid Agreement for Cryptocurrency Seizure
As part of this investigation, we also received a copy of the following mutual aid agreement, which does not appear to be authorized under Florida law in civil asset forfeiture cases:
AGREEMENT BETWEEN VOLUSIA SHERIFF’S OFFICE AND WAUPAСА COUNTY SHERIFF’S OFFICE
FOR SALE OF CRYPTOCURRENCY AND
PAYMENT OF RESTITUTION TO VICTIM
THIS AGREEMENT (“Agreement”) is entered into by and between the Volusia Sheriff’s Office, a Florida independent constitutional office (“SHERIFF”) with administrative offices at 123 West Indiana Avenue, DeLand, Florida 32720-4613 and the Waupaca County Sheriff’s Office with administrative offices at 1402 Royalton Street, Waupaca, Wisconsin 54981 (“REQUESTING AGENCY”).
RECITALS
WHEREAS, SHERIFF and Requesting Agency detectives were investigating separate crimes of theft by fraud and money laundering in their respective jurisdictions.
WHEREAS, SHERIFF and Requesting Agency detectives determined that proceeds from the crimes in their respective jurisdictions were deposited into the same suspect’s cryptocurrency wallet.
More specifically, 0.93733 BTC was deposited into wallet 3B16yKy…i7A under the control of Payward Interactive, Inc.
WHEREAS, Receiving Agency, applied for, and was issued an Order Granting Seizure Warrant, Content of Communications or Other records Pursuant to Wis. Stat. $968.375(3) (“Seizure Warrant”) by the Honorable Vicki L. Clussman on April 14, 2025.
WHEREAS, the seizure warrant commanded Receiving Agency to transfer 0.93733 BTC from wallet 3B16y…Li7A to SHERIFF’S wallet pursuant to a mutual aid agreement and thereafter converted to U.S. currency to be paid over to the victim minus any costs and fees incurred.
WHEREAS, there is no formal mutual aid agreement between the SHERIFF and the Receiving Agency.
WHEREAS, SHERIFF and the Receiving Agency mutually agree, in the interest of honoring the intent of the seizure warrant and making the victim whole, to receive the 0.93733 BTC, convert it to U.S. currency and pay it over to the victim.
NOW, THEREFORE, in consideration of the foregoing recitals which are incorporated herein by reference, and other specific considerations set forth in this Agreement, the receipt and sufficiency of which is acknowledged by SHERIFF and Receiving Agency, the parties hereto agree and stipulate as follows:
- The foregoing representations are hereby adopted as a material part of this Agreement.
- Receiving Agency shall transfer 0.93733 BTC to SHERIFF’S wallet.
- SHERIFF shall receive 0.93733 BTC transfer from Receiving Agency and shall sell the 0.93733 BTC in exchange receive U.S. currency.
- SHERIFF agrees to send by check the amount of U.S. currency received from the sale of the 0.93733 BTC, minus any fees or costs incurred in the sale, to Receiving Agency.
- Receiving Agency in turn will pay over and deliver to the victim the U.S. currency received from the sale of the 0.93733 BTC minus any fees and costs incurred.
- Receiving Agency agrees to defend, indemnify and hold harmless SHERIFF, SHERIFF’s officials, officers, employees, agents and representatives against any and all manner of actions, causes of actions, suits, debts, claims, demands, or damages or liability or expenses of every kind and nature incurred or arising by reason of any actual or claimed wrongful act or omission related to Receiving Agency seizing and transferring the 0.93733 BTC or SHERIFF receiving, exchanging for U.S. currency and transferring the U.S. currency to Receiving Agency.
- AUTHORITY TO SIGN. The representative signing this Agreement on behalf of Receiving Agency and the SHERIFF representative signing this Agreement represent that they each have been duly authorized to execute this Agreement on the behalf of their respective agencies and to bind their respective agencies.
- THIRD PARTIES. In no event shall any of the terms of this Agreement confer upon any third person, corporation, or entity other than the parties hereto any right or cause of action for damages claimed against any of the parties to this Agreement arising from the performance of the obligations and responsibilities of the parties herein or for any other reason.
- GOVERNING LAW. Unless otherwise pre-empted by federal law, this Agreement shall be governed by and construed in accordance with the laws of the State of Florida.
- SEVERABILITY. If any provision of this Agreement is found to be unconstitutional, illegal, or otherwise unenforceable by judgment of a court of competent jurisdiction, such judgment shall not invalidate the remainder of this Agreement, unless such judgment renders the purpose or performance of this Agreement no longer practical for either party.
- ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties with respect to the matters covered by this Agreement and supersedes all oral agreements and negotiations relating to the subject matter hereof between the parties hereto and reflects the full and complete understanding of the parties. This Agreement may be modified or amended only by a document in writing executed by all parties, with the same formalities as this Agreement.
IN WITNESS WHEREOF, the parties to this Agreement between Volusia Sheriff’s Office and Waupaca County Sheriff’s Office for Sale of Cryptocurrency and Payment of Restitution to Victim have caused the same to be signed by their duly authorized representatives on the dates indicated below.
FOR THE VOLUSIA SHERIFF’S OFFICE
….
FOR THE WAUРАСА СOUNTY SHERIFF’S OFFICE
…..
Read more about seizures for forfeiture in Volusia County, FL.