If the police have seized cryptocurrency, a hardware wallet, mobile phone or a device containing access information, obtain legal advice immediately. Law-enforcement agencies now have specific powers to search for, seize, detain, freeze and seek forfeiture of cryptoassets. An arrest is not always required before cryptoassets are seized.
Why can police seize cryptocurrency?
The Economic Crime and Corporate Transparency Act 2023 expanded powers under the Proceeds of Crime Act 2002. Police and other authorised investigators may act where they suspect cryptoassets are recoverable property or intended for use in unlawful conduct.
A “cryptoasset-related item” can include property containing or giving access to information likely to assist in seizing cryptoassets. Depending on the circumstances, that could include a hardware wallet, phone, computer or recorded recovery information.
Does seizure mean the cryptocurrency is permanently lost?
No. Seizure is not the same as permanent forfeiture. The authorities may apply to detain or freeze assets while enquiries continue and may later seek a court order for forfeiture. The procedure, evidence and deadlines depend on the power being used.
The investigation may examine wallet ownership, transaction history, exchange records, source of funds, control of devices and connections with alleged fraud, drug supply, money laundering or organised crime. Digital attribution can be disputed: access to a device or wallet does not automatically resolve who controlled particular transactions.
What should I do if police seized my crypto wallet?
- Keep every seizure notice, court document and property reference.
- Do not delete, alter or move digital records.
- Do not contact other suspects about the investigation.
- Preserve lawful source-of-funds evidence, including exchange statements, bank records and tax or accounting documents.
- Contact Ghafar Khan before giving an account or responding to formal enquiries.
Early preparation may help identify the legal power used, the assets affected, relevant deadlines and whether representations or a court response are required. Independent accounting or digital-forensic evidence may be appropriate in a complex case.
Frequently asked questions
Can police seize cryptocurrency without arresting me?
Yes, the current regime allows law enforcement to seize suspected illicit cryptoassets in circumstances where no arrest has been made. Whether a particular seizure is lawful depends on the facts and the statutory power relied upon.
Can I challenge cryptoasset forfeiture?
You may be able to contest the factual or legal basis of an application and provide evidence of lawful ownership or source of funds. Seek advice promptly because procedural deadlines may apply.
Official information
See the Home Office overview of cryptoasset seizure powers, the Proceeds of Crime Act codes of practice and the Economic Crime and Corporate Transparency Act 2023.
This article provides general information for England and Wales and is not legal advice for an individual case.
Ghafar Khan, Criminal Defence Solicitor and High Court Advocate
24/7 mobile: 07500 556587
Email: notguilty@ghafarkhan.com
Acting throughout England and Wales
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