Civil Forfeiture Action

Definition ∞ A civil forfeiture action permits governments to confiscate assets alleged to be involved in criminal activity, without necessarily prosecuting or convicting the owner. This legal procedure targets the property itself, asserting that the asset facilitated or resulted from illegal conduct. It provides authorities with a mechanism to recover proceeds of crime, including digital assets. The burden of proof often rests differently compared to criminal proceedings.
Context ∞ Civil forfeiture actions concerning digital assets are becoming more common as authorities target cryptocurrency used in scams, drug trafficking, and other offenses. Key discussions involve the due process rights of property owners and the potential for abuse of power by state entities. Future legal reforms may seek to balance effective crime prevention with robust protections for individual property rights in the digital realm.