Digital Asset Seizure and Recovery Flashcards
6 cards from real CCI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Digital Asset Seizure and Recovery flashcards as text
What is typically required before law enforcement can legally seize cryptocurrency held in a suspect's private wallet?
Answer: A seizure warrant issued by a judge based on probable cause
Law enforcement must obtain a seizure warrant supported by probable cause before legally seizing cryptocurrency from a suspect's private wallet.
When law enforcement seizes cryptocurrency held on a centralized exchange, what is the typical process?
Answer: Serving the exchange with a seizure warrant and directing the exchange to transfer funds to a government-controlled wallet
Law enforcement typically serves the exchange with a seizure warrant, and the exchange then transfers the specified funds to a government-controlled cryptocurrency wallet.
What is a hardware wallet and why does its physical possession matter in a cryptocurrency seizure?
Answer: A physical device storing private keys offline; possession allows access to and seizure of the stored cryptocurrency
A hardware wallet stores private keys on a tamper-resistant physical device; gaining possession of it (along with the PIN) enables access to and seizure of the associated funds.
What is civil asset forfeiture in the context of cryptocurrency investigations?
Answer: The government's legal process to take ownership of property linked to criminal activity, even without a criminal conviction
Civil asset forfeiture allows the government to seize and permanently take ownership of property linked to criminal activity, often without requiring a criminal conviction.
What is the primary challenge when attempting to seize cryptocurrency in a self-custody wallet when the private key is unknown?
Answer: Without the private key, the funds cannot be accessed or moved, making seizure practically impossible
Without the private key, there is no practical cryptographic means to access or move funds from a self-custody wallet regardless of any legal authority held.
In the US, which agency primarily manages and auctions off seized cryptocurrency?
Answer: The US Marshals Service (USMS)
The US Marshals Service is primarily responsible for managing and auctioning forfeited cryptocurrency assets as part of their broader federal asset forfeiture mandate.