Asset Forfeiture and Crypto Seizures by Country: Who’s Seizing What and Why
Crypto Seizure Policy Comparison Tool
Compare how different countries handle cryptocurrency seizures and forfeiture policies based on the latest data from 2025.
When the U.S. government quietly added over 207,000 Bitcoin to its holdings in March 2025, it wasn’t buying on the open market. It was taking what criminals stole. That single move changed how the world sees seized cryptocurrency-not as evidence to be sold off, but as a strategic national asset. Countries are no longer just confiscating crypto. They’re holding it, managing it, and even using it to fund future operations. This isn’t just about crime. It’s about power, policy, and the future of money.
How Crypto Seizures Work Today
Seizing cryptocurrency isn’t like grabbing cash from a safe. You can’t just walk into a bank and pull out a wallet full of Bitcoin. Digital assets live on blockchains, protected by private keys. To take them, law enforcement needs either the key or a way to control the wallet-usually through a court order, hacking tools, or cooperation from exchanges that hold the funds.
In 2025, the U.S. Department of Justice and Treasury’s Financial Crimes Enforcement Network (FinCEN) updated their guidance to treat all digital assets-Bitcoin, Ethereum, stablecoins, even NFTs-as property under existing forfeiture laws. That means if someone uses crypto to launder money, pay ransomware, or run a darknet market, the government can legally take it. And they’re doing it more often than ever.
Over $2.17 billion in cryptocurrency was stolen in the first half of 2025 alone. That’s more than the entire year of 2024. The U.S. led in total thefts, but countries like Germany, Russia, and Japan weren’t far behind. Meanwhile, places like the UAE, Chile, and Israel saw the highest average losses per victim. The pattern is clear: where crypto is used, it’s targeted.
The U.S. Strategic Bitcoin Reserve: A Game Changer
Before 2025, seized Bitcoin usually got auctioned off within months. The idea was simple: turn crime into cash. But that flooded the market, drove prices down, and sometimes even funded the very criminals they were trying to stop.
Then came the Strategic Bitcoin Reserve. Created by executive order in March 2025, it’s now the largest single holder of Bitcoin in the world-over 207,000 BTC, worth roughly $17 billion. It’s not a secret stash. It’s a managed sovereign asset, like gold reserves, but digital.
The rules are strict: funds can’t be sold unless needed for victim restitution or law enforcement operations. Any profits from price increases go back into funding cyber units, forensic tools, and international task forces. The U.S. isn’t trying to profit from crypto-it’s trying to control its impact.
And it’s working. Bitcoin prices stayed stable during the largest seizures in history because the government stopped dumping coins. Markets reacted not with panic, but with recognition: the U.S. had become a major player in the crypto economy-not as a trader, but as a regulator with teeth.
Global Leaders in Crypto Seizures
The U.S. isn’t alone. Other countries are catching up, but with different styles.
Germany has built one of the most transparent systems. Their Federal Criminal Police Office publishes quarterly reports on seized crypto, including wallet addresses and asset types. In 2025, they seized over 32,000 ETH and $1.1 billion in stablecoins-mostly from DeFi hacks and money laundering rings.
Japan has taken a more cautious route. Their Financial Services Agency (FSA) works closely with exchanges to freeze accounts before thefts happen. They’ve also partnered with blockchain analytics firms like Chainalysis to track suspicious flows. In 2025, Japan seized over 18,000 BTC, mostly from phishing scams targeting retail investors.
Spain made headlines in late 2025 when their Guardia Civil, working with U.S. agencies, took down a major ransomware gang and recovered $480 million in Bitcoin and Monero. It was the largest international crypto seizure ever coordinated. Spain didn’t have the infrastructure to handle it alone-they needed U.S. forensic teams and legal access to blockchain data.
Russia is different. They don’t seize crypto from criminals-they seize it from dissenters. In 2025, Russian authorities froze over $1.2 billion in crypto belonging to activists, journalists, and opposition figures under broad “national security” laws. It’s not law enforcement. It’s political control.
Canada and South Korea have both created specialized crypto forfeiture units modeled after the U.S. Cyber and Emerging Technologies Unit. South Korea, in particular, has focused on stablecoin thefts-seizing over $700 million in USDC and USDT from fraudulent lending platforms.
Where Crypto Is Legal-And Where It’s Not
Not every country treats crypto the same way. Legal status affects how easily assets can be seized.
In Mauritius, crypto is fully legal under the Financial Services Act 2007. The government doesn’t ban it, but warns investors they have no legal protection if they lose funds. Seizures here follow standard financial crime procedures.
South Africa doesn’t recognize crypto as legal tender, but the tax office treats it as an intangible asset. That means if you earn Bitcoin and don’t report it, you can be fined-and your coins can be seized for tax evasion.
Namibia outright bans crypto exchanges and doesn’t allow crypto as payment. But people still use it. When authorities find it, they confiscate it under banking regulations. No trial needed.
Angola has no laws against crypto, but the government discourages it. Seizures happen, but rarely. It’s a gray zone: technically legal, practically ignored.
Meanwhile, countries like Ukraine, Moldova, and Georgia lead the world in crypto adoption. They don’t seize much-not because crime is low, but because their systems aren’t built for it. They’re focused on survival, not surveillance.
What Gets Seized-and Why
Not all crypto is treated equally.
Bitcoin is still the #1 target. It’s the most liquid, the most traceable, and the most commonly used in ransomware and darknet markets. The U.S., Japan, and Germany lead in BTC seizures.
Ethereum and stablecoins are rising fast. Why? Because they’re used in DeFi, smart contracts, and cross-border payments. Europe leads here. Hackers target liquidity pools, and regulators follow the money.
Altcoins like Solana, Dogecoin, and Shiba Inu are seized less often. They’re harder to track, less liquid, and often used by small-time scammers. But in regions like CSAO (Central Asia, South Caucasus, and the Middle East), altcoin thefts jumped 217% in 2025. That’s where new criminal networks are operating.
NFTs are the wild card. Courts are still deciding if they’re property, collectibles, or just data. But in 2025, the U.S. seized a $2.3 million NFT linked to a money laundering ring. It was the first time an NFT was forfeited as evidence of financial crime. That sets a precedent.
What’s Next for Crypto Forfeiture
The next phase isn’t just about seizing more. It’s about managing smarter.
More countries are talking about creating their own Bitcoin reserves. Germany is testing a pilot. Canada is drafting legislation. Even small nations like El Salvador are considering holding seized Bitcoin as part of their national treasury.
Transparency is becoming a demand, not a luxury. The public wants to know: How much was seized? Where did it go? Who got paid? The U.S. now publishes quarterly reports on its Strategic Bitcoin Reserve. Others are following.
And the tech is getting better. AI tools now predict which wallets are likely to be used for crime before the crime happens. Blockchain analytics firms are working directly with police forces, not just selling data to exchanges.
But there’s a dark side. As governments get better at seizing crypto, they also get better at controlling it. In authoritarian states, this means silencing dissent. In democracies, it means expanding state power over personal finance.
The line between law enforcement and surveillance is blurring. And the world is watching.
Who’s Winning-and Who’s Losing
The U.S. is winning by playing the long game. Instead of cashing out, they’re building a digital reserve. They’re not just chasing criminals-they’re shaping the future of money.
Europe is winning through cooperation. Cross-border seizures are becoming routine. The Spanish-U.S. operation proved that when agencies work together, they can recover billions.
But the losers? Everyday users. People in countries with weak systems-like parts of Africa and Southeast Asia-don’t have the tools to protect their assets. They’re the ones who get robbed, and then have no recourse. Their crypto vanishes, and no one comes to recover it.
And then there’s the real question: if governments hold billions in stolen crypto, does that make them the biggest holders of ill-gotten gains in history?
Maybe. But they say they’re using it for good.
Can governments really keep seized Bitcoin forever?
Yes, but with limits. In the U.S., the Strategic Bitcoin Reserve holds seized Bitcoin indefinitely, but only for specific purposes: victim restitution, funding law enforcement, or national security. Sales are allowed only when approved by Congress and must follow strict reporting rules. Other countries like Germany and Canada have similar rules-they can hold, but can’t freely trade.
What happens to the crypto after it’s seized?
It depends on the country. In the U.S., most goes into the Strategic Bitcoin Reserve. In Germany and Japan, some is held, some is sold quietly to avoid market disruption. In authoritarian states, it’s often used to fund state projects or kept in hidden wallets. In places with weak systems, it’s sometimes lost, stolen, or never properly accounted for.
Can I get my crypto back if it was stolen?
Possibly, but it’s rare. If your crypto was stolen and law enforcement recovers it, you may be eligible for restitution-especially in the U.S., where the Strategic Bitcoin Reserve is required to prioritize victims. But you need to file a claim, prove ownership, and wait months or years. Most people never get anything back.
Is it legal to hold seized crypto if I find it?
No. If you come across crypto that was stolen or seized, holding it-even accidentally-can be considered possession of stolen property. Wallet addresses linked to known criminal activity are flagged globally. If you move funds from those wallets, you risk legal action, even if you didn’t steal them.
Why do some countries ban crypto but still seize it?
Because they want control, not freedom. Countries like Namibia ban crypto to prevent capital flight and maintain banking control. But when people still use it, authorities seize it to punish users and discourage adoption. It’s not about crime-it’s about power.
Are NFTs really being seized as assets?
Yes. In 2025, a U.S. court ruled that an NFT used to launder money was forfeitable property. That was the first legal precedent. Now, NFTs linked to fraud, scams, or darknet markets are being seized alongside Bitcoin and Ethereum. They’re not just digital art-they’re digital assets with value.
How can I protect my crypto from seizure?
You can’t fully protect it if you’re breaking the law. But if you’re compliant-using KYC exchanges, reporting taxes, avoiding mixers or privacy coins-you reduce your risk. The government doesn’t target honest users. They target wallets tied to crime. Keep records. Use regulated platforms. Don’t hide your activity.
Really cool breakdown. The U.S. Strategic Bitcoin Reserve is a genius move-stops market crashes, funds cyber ops, and keeps criminals from cashing out. No more dumping coins like it’s Black Friday.
And honestly? It’s the first time I’ve seen a government use crypto like a real asset, not just a tax loophole.
One must interrogate the epistemological foundations of this so-called 'strategic reserve.' The state's appropriation of digital property under the guise of forfeiture constitutes a metaphysical encroachment upon the ontological sovereignty of the individual. One cannot simply 'manage' ill-gotten gains as if they were Treasury bonds-this is not fiscal policy, it is the institutionalization of theft under the lexicon of law.
That’s a fair point, Mariam. But I think the real issue isn’t whether the government should hold it-it’s whether they’re doing it transparently. If they’re using profits to fund cyber units and victim restitution, that’s not evil. It’s just… bureaucratic.
OMG I CAN’T BELIEVE THEY’RE HOLDING 207K BITCOIN LIKE IT’S GOLD??? WHAT IF THE PRICE DROPS??? WHAT IF THEY GET HACKED??? WHAT IF THE BLOCKCHAIN COLLAPSES??? THIS IS THE END OF CIVILIZATION I TELL YOU!!!
Also I saw a guy on TikTok say the CIA invented Bitcoin to track us. I think this is proof.
Love this thread 😊
Big props to the U.S. for not panicking and dumping coins. And kudos to Germany for being so open with their reports-transparency is the new black.
Also, if you’re a regular person using crypto legally? You’re fine. Don’t stress. Just use KYC exchanges, report taxes, and don’t be shady. 🙌
Everyone’s acting like this is a victory. It’s not. This is the state weaponizing blockchain analytics to normalize surveillance. They’re not protecting victims-they’re creating a ledger of control. The moment you allow the government to hold stolen crypto, you’ve surrendered the right to financial privacy. This isn’t policy. It’s precedent.
So let me get this straight-you’re mad the government didn’t sell all the Bitcoin and crash the market? Good. They didn’t. That’s called being smart.
Meanwhile, some of you are still arguing about 'individual sovereignty' while your wallet’s empty because you sent ETH to a 'free airdrop' that was a honeypot.
Grow up.
It’s wild to think about how crypto has shifted from 'digital gold' to 'digital evidence.'
What’s beautiful is that this isn’t just about crime-it’s about trust. When governments stop treating crypto like a problem and start treating it like a tool, it changes everything.
Even in places like Ukraine or Georgia, where they’re too busy rebuilding to police crypto, people still use it. That says something. The tech is too useful to kill.
And yeah, Russia’s using it to silence dissent? That’s the dark mirror. But the light? The U.S. and Germany are showing how it *could* be done right.
It’s not perfect. But it’s progress. And progress? It’s messy.
Wait… so the U.S. is sitting on $17 billion in stolen Bitcoin… and you’re all okay with that?
What if the government *is* the criminal? What if they’re laundering *their own* money through seized wallets? What if this whole thing is a cover for a global crypto pump?
I’m not saying it’s true… but I’m not saying it’s not.