Can virtual wallets be confiscated by courts?

[SnowAugustine]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

[Fies7aa]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

Remember is different per country, but if they know anything about a virtual wallet and the government wants to seize the currency they can try to hack into your account, or go to the company where the wallet is stored and ask for corporation. If how ever they don't find any clues that you own a virtual wallet, then there should be no problem other than going to jail because you cannot pay ur debt.

Why this question? Do you run a pharmacy lol

[KrishaBitcoin]

If Bitcoin is legal in a certain country then yes it can be confiscated by the court specially if it was involved in illegal activities like money laundering. If you are the wallet owner then the court will command you to give the private keys specially if the transactions are involving huge amounts. So lets just use Bitcoin in to good use but not in illegal transactions.

[mensahkkofie]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

It would be very difficult to see that happening in any part of the world as this is almost impossible unless bitcoin or virtual currencies are legally accepted in that part of the world. The courts usually operates with legality and it is always difficult to see anything outside the legal boundaries being implemented.

[Douglasyukanov]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

the law knows for real status and assets that can be Sita in the form of physical assets and funds that have a legacy to be accounted for.
for the blockchain I don't think it will be touched legally but it can be used as proof of relaxation Funds for money laundering are carried out by alleged guilty of legal cases.

[Ranly123]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

I am an expert on this kind of issue but if I base on what I have understood, our virtual wallets does not directly connected to our personal datas. So in my own opinion, it is really hard or impossible for the authority to confiscate what is never yours.

[posi]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

Well, is all depend on the country where you reside because there are countries that monitor any crypto related transactions both on the dark web and on exchanges but if you make use to decentralized exchanges site there is possibilities for the law enforcement not to seize or know if you hold any kind of virtual currency if you keep your wallet very well. Mind you, it is better to be clean and not get problem with the law.

[Semaj123]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

I am an expert on this kind of issue but if I base on what I have understood, our virtual wallets does not directly connected to our personal datas. So in my own opinion, it is really hard or impossible for the authority to confiscate what is never yours.

Well, it is clearly been stated what the OP has been found out and this is why government still investigating with this kind of issue. As we currently experiencing this what they called "KYC" procedure which I think a tracking options that probably been one of the factor that the government has been made of.

[davis196]

No virtual cryptocurrency wallet provider or cryptocurrency exchange platform would risk losing their business for having people with illegal funds in their accounts.The exchange/wallet admins will give your virtual wallet to the government without any hesitation.That's why we need decentralized crypto exchange platforms and offline cold storage.

[dothebeats]

Yes, especially if a country's laws are designed to do such in the event of misuse of funds or hints of fraudulent activities, or whatever reason they see fit. It's not surprising anymore if courts would order law enforcers to seize assets and digital wallets should the jury end up declaring that something has been breached in a country's law. In the end though, as long as something is unconstitutional, they have the 'right' to take these wallets forcibly, lol.

[shield132]

Well, that happens when you have accounts in banks, government can close them, they can also stuck transactions like receive money on your name via western union, moneygram and etc but that also highly depends where you live. Outside us, I highly doubt government will close your pp, skrill and etc accounts, they simply won't be able to do that because these companies are out of your local governments control. No one can touch your own crypto wallets, that's why some people save money in crypto for bad days.

[charlotte04]

I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article: https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/
"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?

I think they can if they force the person who owns it to give it to them while asking support from a tech person.

[bubblebubble]

I think that app depends by your fiscal history.
In other words the court should dispose to block your crypto wallet if he knows you have one. And this happens if you deviare it...

[Netnox]

This is what happened with Ross Ulbricht, right? The FBI seized more than 200K coins from his wallet and later they auctioned all those coins. So my guess is that it is possible for the courts to confiscate the coins.

[Impulseboy]

This is what happened with Ross Ulbricht, right? The FBI seized more than 200K coins from his wallet and later they auctioned all those coins. So my guess is that it is possible for the courts to confiscate the coins.

Who auctioned the coins? The FBI? That is unethical, is it not? He probably worked on those coins but someone just auctioned it off when they took it away from him? Do you think there should be a way we can store coins in a virtual wallet that the court cannot confiscate?

[timerland]

Of course. As long as virtual currencies are accepted as private property, I don't see why they can't do that in case someone is in debt and assets are needed to repay the debt. It all differs country to country, because some countries may well have recognition for cryptocurrencies as property and can thus chase it down when it comes to legal issues, and others don't.

The article is suggesting that law enforcement doesn't know where to look, which is probably wrong in the majority of countries now given that bitcoin's been around for a decade.

Otherwise, all the U.S. bitcoin seizures, confiscations, and auctions would not have happened.

[drm]

Can't confiscate anything without a private key or a .dat that isn't encrypted

[figmentofmyass]

"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."

So does that mean that the law will not touch your virtual wallet in case of debt, for example?

it means they can't seize cryptocurrency if they can't recognize it when searching your devices, or if they can't break your wallet passphrase. if you encrypt wallet files or private keys effectively, they won't be able to access them.

if the government can seize your wallet, they gladly will. consider the case of silk road creator, ross ulbricht. or the other cases where the USMS auctioned off coins. supposedly, the bulgarian government is sitting on 213,000+ seized bitcoins.

[SnowAugustine]

"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."

So does that mean that the law will not touch your virtual wallet in case of debt, for example?

it means they can't seize cryptocurrency if they can't recognize it when searching your devices, or if they can't break your wallet passphrase. if you encrypt wallet files or private keys effectively, they won't be able to access them.

if the government can seize your wallet, they gladly will. consider the case of silk road creator, ross ulbricht. or the other cases where the USMS auctioned off coins. supposedly, the bulgarian government is sitting on 213,000+ seized bitcoins.

Woah... that's a lot of money. So, basically, if the authorities know of the digital wallet's existence, then they will seize it. Otherwise, it will stay safe and sound. Sounds logical.

Ok, just to clarify for those who were wondering why I was asking this. It's just plain old curiosity and a healthy argument with a friend that lead me to this question.

Thanks, everyone.

[ecnalubma]

I’m not a legal advisor but in my opinion I think this law is not crafted yet or will not be crafted. It will also depend on what jurisdictions, some countries may apply some may not. Just like the bank secrecy law that protect its clients from unnecessary inquiries but some can be voided by law. But for criminal cases I think it is necessary to confiscate such assets mostly if it involves in drugs and corruption without excuses and with solid evidence.