Seizure of Assets

Definition ∞ Seizure of assets, in the context of digital assets, refers to the legal process by which governmental authorities or court orders confiscate cryptocurrencies or other digital tokens from an individual or entity. This action typically occurs as part of criminal investigations, civil litigation, or enforcement of sanctions, aiming to recover illicitly obtained funds or satisfy legal judgments. The technical execution of a seizure often involves obtaining control over private keys or collaborating with centralized exchanges. It represents a significant legal and technical challenge in the digital asset space.
Context ∞ The ability of authorities to execute a seizure of assets in the digital realm is a frequent topic in news regarding financial crime and regulatory enforcement. Discussions often address the complexities of identifying and accessing digital assets, especially those held in self-custody or privacy-enhanced protocols. Advances in digital asset tracing and international cooperation are improving law enforcement’s capacity to perform such seizures.