Yes. In the United States, keeping cryptocurrency in a self-custody wallet does not make it immune from government seizure. The U.S. Department of Justice’s 2025 Asset Forfeiture Policy Manual says an agency should obtain a seizure warrant for cryptocurrency possessed and controlled by an owner in a domestic self-custodial wallet, unless a search warrant or the owner’s consent already authorizes the seizure.
That policy describes DOJ procedure, not a blanket rule that every wallet or every coin is forfeitable. The specific warrant, statute, court order, ownership facts, and jurisdiction control what can happen. A seizure also is not the same as a final forfeiture judgment or a criminal conviction.
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What self-custody does—and does not—protect
A self-custody wallet is software, a hardware device, paper backup, or another system through which the owner controls the private keys used to authorize cryptocurrency transactions. The wallet does not contain coins in the same way a physical wallet contains cash. The assets remain recorded on a blockchain; control depends on the keys.
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- Self-custody is a custody model, not a defense to forfeiture. It changes who controls the keys, not whether a court can authorize a seizure.
- A private key is not the cryptocurrency itself. It is the information that permits transactions affecting the blockchain address.
- Technical access and legal authority are separate questions. An agency needs lawful authority to seize property and must still satisfy the applicable forfeiture rules.
Which U.S. scenario applies?
The location and controller of the keys matter. DOJ distinguishes a wallet controlled directly by the owner from an account maintained by a virtual asset service provider. The procedure can also change when the provider is outside the United States.
| Where the cryptocurrency is controlled | Typical DOJ procedure described in the 2025 manual | Important qualification |
|---|---|---|
| Domestic self-custodial wallet | Obtain a seizure warrant, unless a search warrant authorizes seizure or the owner consents; serve the seizure warrant on the owner or counsel. | The particular warrant and legal basis determine what property may be taken. |
| Account at a U.S.-based virtual asset service provider | Serve the seizure warrant on the provider, similarly to serving a bank account seizure. | The provider, rather than the customer alone, controls the relevant account access. |
| Wallet or account hosted by a foreign provider | Consult DOJ’s Office of International Affairs; restraint or seizure may require a mutual legal assistance request or comparable authority. | Foreign law, treaties, and the provider’s location affect the process. |
This federal framework should not be treated as a universal rule for state agencies, foreign governments, or every type of digital asset. State statutes and procedures may differ, and a particular case can involve both federal and state authorities.
What authority can let the government seize a self-custodied wallet?
A seizure warrant
For cryptocurrency in a domestic self-custodial wallet, the DOJ manual says the seizing agency should obtain a seizure warrant unless another authorization applies. The warrant identifies the property and the legal basis for taking or restraining it. DOJ’s quoted policy states: “Unless a seizing agency has obtained authorization through a search warrant or consent by the owner, the seizing agency should obtain a seizure warrant for the seizure of cryptocurrency.” That is agency policy guidance, not statutory text that automatically resolves every case.
A search-and-seizure warrant
In some investigations, a Federal Rule of Criminal Procedure 41 warrant for a residence, computer, phone, or other device can authorize officers to search for and seize wallet software, hardware, or key material. A search warrant may therefore provide the authority needed for the cryptocurrency seizure. It is important not to assume that every search warrant authorizes taking every asset discovered: the warrant’s language, probable-cause showing, scope, and the governing law matter.
Owner consent
An owner can voluntarily authorize access or transfer. Consent can eliminate the need for a separate seizure warrant under the DOJ policy, but consent must be legally valid under the circumstances. A person who is being questioned or searched should understand what officers are asking to access and should avoid making decisions about a live investigation without legal advice.
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How officers can reach cryptocurrency in a hardware or software wallet
DOJ identifies several possible locations for private-key material:
- A wallet application installed on a computer or smartphone.
- An external device, such as a hardware wallet or USB drive.
- A written or printed paper backup.
- Other storage where a seed phrase, private key, or wallet backup is kept.
A hardware wallet can protect keys from ordinary online theft, but it is not a way to prevent lawful seizure. If officers have authority to search for and seize the device, or obtain the seed phrase or another copy of the key, the physical security feature does not override the warrant.
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The practical question is whether the authorized agency can access the key and move the assets. Once a transfer is lawful, the blockchain transaction is generally irreversible. DOJ instructs agencies to transfer authorized seizures promptly to a government-controlled wallet because another person may possess a duplicate key and could move the cryptocurrency first.
What happens after the initial seizure?
Seizure is an interim act: the government takes possession or control while it pursues the applicable forfeiture process. It does not by itself decide that the property is forfeited forever.
- Authority is obtained. Investigators secure a seizure warrant, rely on a search warrant that authorizes seizure, or obtain valid owner consent.
- The key or device is located. Officers may search the places and devices described in the warrant, subject to its limits.
- The assets are moved or restrained. After lawful access, the agency may transfer cryptocurrency to a government-controlled wallet. If immediate transfer is not possible, the agency may use another authorized restraint method.
- Government custody begins. DOJ policy says cryptocurrency is generally kept in the form seized while forfeiture processing continues. Custody records and access controls become important because copies of a key could permit competing transfers.
- Notice and a forfeiture proceeding follow. The government must use the notice and claim procedures required for the type of forfeiture. The owner or another claimant can assert available defenses.
The exact deadlines and paperwork depend on whether the matter is administrative, civil judicial, or criminal forfeiture and on the notice or court papers served. There is no single deadline that safely applies to every seizure notice.
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Seizure versus civil or criminal forfeiture
Seizure is not a final ruling
A seizure can occur before a court decides whether the property is forfeitable. It is possible for cryptocurrency to be restrained during an investigation and later returned, released, or forfeited after the required process. A seizure also does not establish that the owner committed a crime.
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Civil forfeiture burden
Under 18 U.S.C. § 983, in a civil forfeiture action the government generally must establish by a preponderance of the evidence that the property is subject to forfeiture. “Preponderance” means the government must show that the required facts are more likely true than not, rather than meeting the beyond-a-reasonable-doubt standard used for a criminal conviction.
Connection to an alleged offense
When the government claims that property was used to commit or facilitate an offense, Section 983 requires a substantial connection between the property and the offense. Other theories can involve alleged proceeds of unlawful activity or property involved in an offense. The evidence and statutory requirements depend on the theory pleaded in the case.
Innocent-owner defense
Section 983 includes an innocent-owner defense. A claimant who invokes it bears the burden of establishing innocent-owner status by a preponderance of the evidence. The facts that matter can include what the claimant knew, when the claimant acquired the interest, and what reasonable steps were taken after learning of the conduct. The defense is fact-specific and should not be assumed to apply automatically to every co-owner or purchaser.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the August 2025 DOJ example shows
On August 14, 2025, DOJ announced that six warrants authorized the seizure of more than $2.8 million in cryptocurrency and other property. DOJ said the cryptocurrency was seized from a wallet controlled by an indicted defendant and described the funds as allegedly connected to ransomware proceeds and laundering.
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This example demonstrates that authorities have executed warrant-backed seizures involving a controlled wallet. It does not establish that the alleged conduct was adjudicated, that the defendant will be convicted, or that every self-custodied wallet is forfeitable. DOJ also noted that defendants are presumed innocent.
Can police take crypto from a hardware wallet?
They may be able to seize the hardware wallet itself, a computer or phone used with it, a USB backup, or written recovery material when a valid warrant covers those items. If the authorized agency can use the key or seed phrase to control the associated address, it may transfer the cryptocurrency to government custody.
The outcome depends on the warrant’s scope, the location of the key, encryption and authentication issues, the ownership of the device, and whether another person has a copy. A device’s branding or “cold storage” design does not determine the legal result.
Can the government seize crypto without an exchange?
Yes. An exchange is not required for a seizure. In a self-custody case, the government can proceed against the owner-controlled wallet under the warrant and forfeiture procedures described above. The absence of an intermediary may make access and evidence-gathering more technical, but it does not remove the government’s legal authority when that authority is properly established.
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Do not move assets to frustrate a warrant, destroy key material, or ask someone else to conceal or transfer property. Those actions can create additional legal exposure and may interfere with the case.
- Preserve every document. Keep the warrant, inventory, seizure notice, forfeiture notice, court filings, transaction records, and correspondence in their original form.
- Record what was taken. Note which devices, wallets, accounts, seed backups, and records are listed, without altering them or attempting unauthorized access.
- Identify the procedural stage. Determine whether you received a search warrant, seizure warrant, administrative notice, civil complaint, or criminal court order. The document controls the next deadline.
- Obtain prompt, case-specific counsel. A lawyer experienced in federal asset forfeiture and cryptocurrency matters can evaluate standing, notice, ownership, probable cause, statutory defenses, and the correct claim or response.
- Protect unrelated assets and records lawfully. Follow preservation obligations and do not delete messages, wallet logs, tax records, or transaction histories.
Because Section 983 procedures vary by notice and posture, waiting for a generic internet deadline can cause a claim or defense to be lost. A qualified attorney can determine which filing is required and when.
Quick Recap
Key takeaways
- In the U.S. federal context, self-custody is not a categorical shield against seizure.
- DOJ policy calls for a seizure warrant for owner-controlled cryptocurrency in a domestic self-custodial wallet unless a qualifying search warrant or owner consent applies.
- Private keys may be on a phone, computer, hardware wallet, USB device, paper, or another backup location.
- After lawful access, agencies are directed to move the assets quickly to government-controlled custody because duplicate keys can enable competing transfers.
- Seizure is temporary control or restraint; forfeiture requires the applicable statutory and procedural process.
- In civil forfeiture, the government generally must prove forfeiture by a preponderance of the evidence, and a facilitation theory requires a substantial connection to the offense.
- An innocent-owner defense exists under Section 983, but the claimant must establish it by a preponderance of the evidence.
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