Federal Criminal Forfeiture Laws and Defenses in 2025

Imagine waking up one day to find your bank accounts frozen, your car towed away, and your home under threat of seizure. This isn’t a dream—it’s the harsh reality of federal criminal forfeiture. In cases of alleged criminal activity, the federal government has the power to seize property they believe is connected to the offense, and these actions aren’t limited to convicted criminals. That’s why it’s important to understand federal criminal forfeiture laws and defenses.

The government can seize assets even before charges are filed, which can leave individuals scrambling to protect their property and financial future.

If you are caught in this web, you need to not only understand your rights, but the scope of federal forfeiture, and the potential defenses available. Federal criminal forfeiture can feel like a David vs. Goliath battle, but with the right approach, you can push back against government overreach.

What Is Federal Criminal Forfeiture?

Federal criminal forfeiture allows the government to seize property, money, and assets that they believe are connected to illegal activity. Unlike civil forfeiture—where property can be taken without criminal charges—criminal forfeiture occurs as part of a criminal case. It targets properties that they believe are:

1. Proceeds of the Crime—money, profits, or assets acquired through illegal means (like drug trafficking profits).
2. Instruments of the Crime—property used to commit a crime, like vehicles used for drug transportation or buildings used for illegal gambling.
3. Facilitating Property—assets that “facilitate” a crime, like bank accounts used to transfer illegal funds.

The government’s goal is to disrupt criminal enterprises and deprive defendants of the “tools” they need in order to commit offenses. In these cases, the stakes are high, as the government can seize cash, vehicles, real estate, jewelry, and even cryptocurrency wallets.

How Does Federal Criminal Forfeiture Work?

Unlike ordinary criminal proceedings, forfeiture cases follow a unique process. Here’s a breakdown of how it typically unfolds:

1. Indictment and Notice. When someone is indicted for a federal crime, the prosecution includes a notice of forfeiture in the indictment. This tells the defendant and the court which assets the government plans to seize.
2. Seizure and Restraining Orders. Even before a conviction, federal authorities can freeze bank accounts, seize property, and restrain access to funds.
3. Forfeiture Hearing. If the defendant is convicted, the court holds a forfeiture hearing where the government presents evidence that can link the property to the crime.
4. Forfeiture Order. If the court agrees with the government, a forfeiture order is issued, which then transfers ownership of the property to the U.S. government.

Once the forfeiture is finalized, the government can sell, keep, or destroy the property. Proceeds from sales are often funneled into law enforcement budgets or victim restitution funds.

Defenses to Federal Criminal Forfeiture

If you are facing asset seizure, you have options. The government may have broad power, but it is not unlimited. Here are the most effective defenses against federal criminal forfeiture:

1. Innocent Owner Defense. If you can prove that you had no knowledge that your property was involved in illegal activity, you may be able to reclaim it. For example, if your car was used by a friend to transport drugs without your knowledge, you can claim to be an innocent owner.
2. Lack of Nexus to the Crime. The government must prove a “substantial connection” between the property and the crime. If they cannot establish this link, the forfeiture can be challenged.
3. Violation of Due Process. If the government failed to provide proper notice of forfeiture or violated your rights during the seizure process, you can argue that your due process rights were violated.
4. Proportionality Defense. The Eighth Amendment of the U.S. Constitution prohibits “excessive fines.” If the value of the seized property is disproportionate to the crime, you can challenge it under this provision.
5. Wrongful Seizure Defense. If the government seized the wrong property or seized it based on false information, you can challenge it.
6. Statutory Defenses. Some forfeiture laws have specific exceptions. For example, under certain drug forfeiture statutes, family homes cannot be seized if minor children live there.

To mount an effective defense, it is crucial to act quickly, because once your property is seized, the clock starts ticking to file claims and present your evidence.

How an Attorney Can Help

If you are facing forfeiture, hiring an attorney is not just helpful; it’s essential. Without legal representation, you are at the mercy of federal prosecutors and government agents who have already built a case against you.

When everything you own is on the line, you need an advocate who understands the complexities of federal forfeiture laws.

FAQs

Can Cryptocurrency Be Seized Under Federal Criminal Forfeiture?

Yes, cryptocurrencies like Bitcoin and Ethereum are frequently targeted in forfeiture cases. Because digital wallets are considered “property,” they fall under the same rules as physical assets. Federal agencies can track transactions and freeze wallet access during these investigations. It is important to seek legal counsel as soon as possible.

How Long Does It Take to Get Seized Property Back?

The answer to this depends on the case. If you file a timely claim with the help of an attorney, it will depend on the length of the court process. However, without a legal challenge, your property could be permanently forfeited. It is imperative that you seek legal counsel as soon as possible. The Law Offices of Marc S. Nurik can begin strategizing after a full review of your case.

What Happens to Seized Property If the Case Is Dismissed?

If a criminal case is dismissed, it does not automatically guarantee the return of seized property. Federal agencies may initiate civil forfeiture proceedings to retain the property, arguing that it is linked to illegal activity. To recover seized property, you must file a claim with the help of a lawyer and prove your right to it in a separate legal process.

Can Federal Agencies Seize Business Accounts?

Yes, federal agencies can seize business accounts if they believe that the funds are linked to criminal activity, for example, money laundering, wire fraud, or tax evasion. Seizure can happen without prior notice under civil forfeiture laws. Business owners can challenge the seizure by filing a claim, but they must prove that the funds were obtained through lawful means.

Consult with the Law Offices of Marc S. Nurik

Facing federal criminal forfeiture can be one of the most overwhelming experiences of your life. The government has vast resources at its disposal, but that doesn’t mean the fight is over. By understanding the process and mounting a strong legal defense, you have a chance to reclaim what’s rightfully yours.

The Law Offices of Marc S. Nurik offers experienced legal representation for individuals and businesses who are facing federal forfeiture. With deep knowledge of forfeiture laws and a commitment to protecting our clients’ rights, we stand ready to help you push back against government overreach.

Contact us today to schedule a consultation.