Cryptocurrency Asset Seizure – Capturing the Intangible
Understanding the new legal powers for seizing cryptoassets under the Economic Crime and Corporate Transparency Act 2023 and how to protect your cryptocurrency investments.
Principal Areas of Focus to Seize Cryptoassets
The Economic Crime and Corporate Transparency Act 2023 introduced significant changes to the Proceeds of Crime Act 2002. The replication of tried and tested seizure measures for other assets meant that authorities now enjoy new powers based on real-life experience when dealing with tangible assets.
Specifically, the new Chapter 3C of the 2002 Act sets out the basis on which cryptoassets can be searched for, seized and held.
New Legal Powers Include:
Principal Areas of Focus to Seize Cryptoassets
Due to their intangible nature, the main focus of cryptoasset seizure is on crypto wallets and crypto exchanges.
Crypto Wallets
Physical and digital wallets can be seized and held until courts authorize release.
Crypto Exchanges
Assets held on exchanges can be detained through court orders and enforcement actions.
Related Items
Hardware devices, USB drives, and other items containing crypto access can be seized.
Court Intervention and Oversight
Judicial Oversight
An important aspect of this new legislation is the involvement of the courts throughout the process. The authorities must make a case to the courts (except in the case of an emergency seizure) to authorize the initial seizure. Thereafter, the courts must give consent to the continued retention of the cryptoassets.
Detention Timeframes
Initial Seizure
Emergency seizure without court order in urgent circumstances
Standard Detention
Court-authorized detention period with judicial oversight
Extended Detention
Maximum retention period with additional court applications
Exceptional Cases
Additional year in exceptional circumstances with court approval
Remedies for Cryptoasset Owners
Your Rights as a Cryptoasset Owner
As the courts are involved in cryptoasset seizure cases, those affected can make representation to seek their release. The courts will weigh up the benefit to the authorities in retaining control of the cryptoassets.
Court Considerations Include:
- Whether continued retention is justified
- Financial damage sustained by the owner
- Inconvenience caused by retention
- Lost opportunities for trading and gains
Cryptoasset Seizure, Retention and Release Specialist Solicitors
If your cryptocurrency assets have been seized or you're facing a crypto investigation, our specialist team can provide expert legal representation to protect your interests.
Leading cryptocurrency seizure defence lawyers with proven expertise in crypto asset recovery and court representation.