Substitute House Bill No. 6990, effective July 1, 2026, modernizes the legal framework surrounding the seizure and forfeiture of virtual currency and virtual currency wallets in connection with criminal violations. The bill expands the definition of "property" to explicitly include these digital assets, allowing the Chief State's Attorney or designated attorneys to petition for forfeiture within ninety days of seizure, with the state required to prove its case by clear and convincing evidence. It also protects owners or lienholders who were unaware of the criminal use of their property from forfeiture and clarifies that legitimate attorney's fees cannot be seized. Additionally, the bill mandates that any forfeited property must be sold at public auction, with proceeds allocated to cover liens, storage costs, and court expenses.

The legislation further amends existing statutes to incorporate virtual currency into the definitions of "contraband" and "stolen property," and it repeals and replaces certain sections of the general statutes to ensure consistency with current laws regarding controlled substances and other illegal activities. New definitions for "virtual currency" and "virtual currency wallet" are introduced, reflecting the growing significance of digital assets in financial transactions. The bill also emphasizes that property must be returned to its owner if the related criminal proceedings do not result in a guilty plea or verdict, thereby safeguarding the rights of property owners while adapting to the evolving landscape of financial instruments.

Statutes affected:
Raised Bill: 54-36h, 54-36o
BA Joint Favorable: 54-36h, 54-36o
File No. 270: 54-36h, 54-36o
JUD Joint Favorable: 54-36h, 54-36o
File No. 907: 54-36h, 54-36o, 54-36p
Public Act No. 25-41: 54-36h, 54-36o, 54-36p