Can Texas Authorities Seize Cryptocurrency in an Asset Forfeiture Case?

 Posted on September 14, 2026 in Civil Asset Forefiture

Texas authorities can seize cryptocurrency in an asset forfeiture case because Texas law specifically names digital currency as property the state can treat as contraband. This also covers non-fungible tokens and stablecoins. If you are dealing with a cryptocurrency seizure in 2026, our El Paso, TX asset forfeiture defense lawyer can help you understand what the state has to prove before it can keep your assets.

What Texas Law Lets Police Seize Cryptocurrency as Contraband?

Under Texas Code of Criminal Procedure Article 59.01, the definition of "contraband" now includes digital currency, non-fungible tokens, and stablecoins. This applies when these assets are used in or connected to certain felony offenses, such as fraud, money laundering, or drug trafficking. Before this change, prosecutors had to stretch older definitions written for cash and physical property. Those older rules were not built with digital assets in mind. Now the law addresses cryptocurrency directly. This makes it easier for the state to pursue these cases.

How Do Police Seize Someone's Cryptocurrency?

Since cryptocurrency does not sit in a wallet, police identify digital assets through blockchain analysis software, exchange records, or evidence found on a suspect's devices. Under Texas Code of Criminal Procedure Article 59.03, property subject to forfeiture may be seized under a search warrant. Police may also seize it without a warrant in certain situations, such as with the owner's consent or when the seizure is incident to a lawful arrest or lawful search.

If digital currency, a non-fungible token, or a stablecoin is seized, the law enforcement agency must transfer it within 72 hours to a wallet that is not connected to an exchange or network and that is accessible only by law enforcement or the attorney representing the state.

What Does Texas Have to Prove to Keep Seized Cryptocurrency?

Texas asset forfeiture is a civil process. It is not a criminal one, even though it often follows a criminal investigation. Under Texas Code of Criminal Procedure Article 59.05, the state must prove by a preponderance of the evidence that the property is connected to a crime – meaning it only has to show that the connection is more likely true than not. A criminal conviction is not required for this process to move forward.

The Forfeiture Hearing

At the hearing, both sides can present evidence. The state has to show a real connection between the cryptocurrency and the alleged offense.

Defenses an Owner Can Raise

You can argue that the cryptocurrency came from a legitimate source or that there is no real link to criminal activity. If an underlying charge was dismissed or ended in an acquittal, that can support your case, too.

How Long Does a Cryptocurrency Forfeiture Case Take in Texas?

No set timeline fits every case. Some cases move quickly if the state and the owner reach an agreement early on. Other cases take much longer, especially when the value of the cryptocurrency needs to be tracked over time or when multiple owners have a claim to the same wallet.

The state is required to give notice of the seizure within a set period. You then have a window of time to file a response. Missing that window can seriously hurt your ability to fight the forfeiture later. Because these deadlines are strict, it helps to get guidance as soon as a notice arrives rather than waiting to see how things unfold.

What Should You Do if Your Cryptocurrency Was Seized in Texas?

Losing access to digital assets during an investigation puts you in a strange kind of limbo, made worse by the fact that cryptocurrency values can swing sharply from one day to the next. A few steps can help protect your position:

• Save records of how and when you acquired the cryptocurrency.

• Avoid transferring or hiding any related assets, since this can be used against you.

• Keep copies of exchange statements, wallet addresses, and transaction histories.

• Respond to any forfeiture notice within the deadline listed on the paperwork.

Taking these steps early can help you show the court a clear and honest picture of where your assets came from.

Schedule a Free Consultation With Our El Paso County, TX Asset Forfeiture Defense Attorney

Attorney Arnold Spencer brings more than 30 years of legal experience to these cases. He is known as a strong trial lawyer and litigator and is comfortable taking a case in front of a judge when negotiation does not lead to a fair result.

If your cryptocurrency has been seized or you have received a forfeiture notice, talk with an El Paso, TX asset forfeiture defense lawyer at Spencer & Associates as soon as possible. Call 214-376-4441 today.