What happens when authorities seize Bitcoin and other crypto assets?

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There has been a string of crypto scams over the last few years. The culprits behind these hacks and attacks have managed to syphon millions of dollars from investors and decentralised finance (DeFi) platforms alike. Fortunately, some of these fraudsters have been caught, and their ill-gotten funds have been recovered.For instance, last February, the US Department of Justice (DoJ) announced a Bitcoin seizure worth $3.6 billion, the single largest financial seizure in the DoJ's history.

Until December 2021, the US Marshal Service had also recovered 22 different cryptocurrencies valued at over $900 million. In fact, cryptocurrencies made up over 90 percent of the assets seized by the US Internal Revenue Service.But what exactly are crypto seizures? How can digital assets even be seized? And what happens when authorities take these assets? Let's find out.What are crypto seizures, and how are they seized?Crypto seizures occur when authorities legally evict criminals of digital assets that are not rightfully theirs. However, authorities can't seize cryptos like they seize cars or real estate.

You can't exert physical force or legally coerce the criminals in question. Instead, you need to find the crypto wallet containing the assets and the corresponding private key.You cannot remove the funds from a wallet without a private key. Authorities usually work with the exchange that hosts the wallet to gain entry and recover the funds.