The financial burden of asset forfeiture can be devastating. Seized bank accounts may make it impossible for a person to pay living expenses or business costs.
The federal government has a great deal of power, and actions taken by federal agents can affect the lives of regular Americans. In some cases, those agents may take action to seize people’s money or assets. While people may assume that the government can only take their property if they are found guilty of a crime, this is not always true. Under federal asset forfeiture laws, the government has the authority to seize cash, vehicles, real estate, bank accounts, and other property based on suspicions of criminal activity alone.
In many asset forfeiture cases, charges are never filed, and convictions are never obtained, but property that was seized is never returned. Understanding how federal asset forfeiture works, when it applies, and how to fight back is essential for anyone whose assets have been seized. An attorney with experience defending against asset forfeiture can provide crucial legal representation in these matters and build a compelling case for the return of a person’s money or property.
What Is Federal Asset Forfeiture?
The federal government can take action to seize money or property that it believes is connected to criminal activity. The stated purpose of asset forfeiture is to disrupt criminal activities and prevent criminals from using money or property obtained through crimes. In some cases, forfeitures may be used to compensate victims of crimes.
The scale of federal asset forfeiture is enormous. The Department of Justice has reported that over the past 10 years, it has seized around $2 billion each year. The Institute for Justice has also reviewed figures provided by federal agencies and determined that between 2000 and 2023, the federal government received more than $57 billion in revenue from assets that were seized.
Multiple federal agencies use asset forfeiture to seize money or property. In some cases, these forfeitures are related to criminal investigations performed by agencies such as the Drug Enforcement Administration (DEA). In others, government agents may seize cash or other property from people because they seem suspicious or because they believe that a person carrying a large amount of cash must be involved in criminal activity. U.S. Customs and Border Protection regularly seizes cash from people traveling into or out of the United States. In 2025, CBP reported that it seized an average of around $182,000 each day.
Why the Government May Seize Property
The government does not need to prove criminal wrongdoing to initiate a seizure. Federal agents are generally required to show that there is probable cause to believe that property is connected to a crime. In practice, that threshold is often lower than people expect.
Some common reasons the government may seize property include:
- Drug Investigations: Cash, vehicles, real estate, or other property believed to have been purchased with or used in connection with drug trafficking may be seized.
- Suspicious Cash Transactions: People who carry large amounts of cash in airports or on highways may have their money seized based on little more than a claim that the cash they are carrying may be related to drug crimes.
- Bank Account Activity: Accounts with large cash deposits and withdrawals that take place regularly may be associated with money laundering, and federal officials may take steps to have these accounts frozen or seized.
- Real Estate Property Used in Criminal Activity: Homes, businesses, or other real estate that has allegedly been used for illegal purposes or purchased with the proceeds of criminal activity may be seized.
- Vehicles: Cars, trucks, boats, or aircraft used to transport contraband or engage in criminal activity can be seized and forfeited.
- Digital Assets: Cryptocurrency and other digital assets that may be related to criminal conduct are being targeted by federal officials, and they may be seized, preventing a person from using or transferring them.
Criminal Cases and Investigations That Can Lead to Asset Forfeiture
Federal officials who are involved in a wide range of criminal investigations may take steps to seize assets. Investigations that can lead to asset forfeiture include:
Drug Trafficking and Distribution
Federal drug crimes serve as the most common basis for asset forfeiture. The DEA may use forfeiture to try to dismantle drug trafficking organizations, including seizing cash carried by dealers, confiscating vehicles used to transport drugs, or seizing properties where drug labs are allegedly located. Any assets that are believed to be proceeds from drug sales or are related to drug crimes in any way may be targeted by investigators.
Money Laundering
Property that has allegedly been used to conceal the origins of money earned through criminal activities may be seized by federal officials. Assets that may be involved in alleged money laundering schemes may include bank accounts, real estate property, artwork, cryptocurrency, or income earned through a business. Money laundering charges may be charged alongside other federal offenses, such as drug crimes or fraud.
Fraud and White-Collar Crimes
Federal fraud offenses include wire fraud, bank fraud, healthcare fraud, and tax evasion. Any assets that were allegedly obtained by fraud may be seized by federal officials. White-collar investigations by agencies such as the FBI or the IRS could lead to asset forfeiture.
Racketeering and Organized Crime
The Racketeer Influenced and Corrupt Organizations Act (RICO) allows federal officials to seize assets that are allegedly involved in organized crime. Gangs or businesses that are allegedly operating as criminal enterprises may become involved in investigations, and financial accounts, real estate property, or other assets may be seized.
Human Trafficking and Child Exploitation
In recent years, government officials have increased their focus on human trafficking, taking steps to prevent children or others from being exploited. Property that has allegedly been involved in trafficking, such as hotels, businesses, or homes where children or others are kept, may be seized during these investigations.
Why Legal Representation Is Critical When Addressing Asset Forfeiture
Contesting asset forfeiture by the federal government can be a complex process. Strict deadlines will apply, and complex rules may affect a person’s ability to get their property back. Even if a person has an explanation for why they were carrying a large amount of cash or can show that money or property was obtained legally, they will often face an uphill battle as they try to recover their assets.
An attorney with experience handling asset forfeiture cases can determine the best steps to take to recover property that has been seized. They can evaluate the claims made by the government about a person’s alleged involvement in criminal activity, take steps to show that there was no probable cause to perform a seizure, and make sure all petitions or other documents are filed correctly within the appropriate deadlines.
The financial burden of asset forfeiture can be devastating. Seized bank accounts may make it impossible for a person to pay living expenses or business costs. The seizure of a home or vehicle may affect a person’s living situation and transportation options. They may need to put off major purchases or transactions until they can get their property back. An asset forfeiture defense attorney can help address these issues and make sure the right steps are taken to recover property as quickly as possible.
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