Government Seizes 1,230 Bitcoin from Raheim Hamilton

Raheim Hamilton has been sentenced to 40 years in prison this week and has agreed to forfeit approximately 1,230 bitcoin. The government does not need to take over the bitcoin network to seize crypto; it is about access to the coins and legal actions. Justice can secure bitcoin through a secret access key or a cryptocurrency exchange. Seizure does not mean that the government can permanently keep the coins, and seized bitcoin is not automatically sold. A private key is needed to move bitcoin; law enforcement can find this on devices or documents. Sometimes a cryptocurrency exchange holds the coins, and justice can compel this exchange to cooperate with a legal order. With access, the coins can be sent to a secure government wallet. In seizure, a distinction is made between seizure and permanent confiscation. The judge determines which assets are permanently confiscated, and a suspect can agree to this. What happens to the bitcoin is a separate step; the crypto remains preserved until it is definitively decided that the government may keep the coins. The U.S. Marshals Service can sell the coins to compensate victims, but bitcoin in the U.S. strategic bitcoin reserve cannot be sold.

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