Substitute House Bill No. 6990 introduces new regulations for the seizure and forfeiture of virtual currency and virtual currency wallets in the state, effective July 1, 2026. The bill expands the definition of "property" to include these digital assets, allowing them to be forfeited if used in connection with certain criminal activities, such as theft and fraud. It mandates that the Chief State's Attorney or designated officials must petition the court for forfeiture within 90 days of seizure, and the state must prove its case by clear and convincing evidence in a civil suit format. The bill also includes provisions to protect property owners and lienholders, ensuring that no property will be forfeited if the owner was unaware of its criminal use, and that legitimate attorney's fees cannot be seized.

Additionally, the bill outlines the process for forfeiture proceedings, requiring hearings to occur within two weeks after a related criminal case is resolved. If the criminal case does not result in a guilty plea or verdict, the property must be returned to the owner. The legislation also specifies that alternative notification methods, including electronic means, may be used to inform property owners about forfeiture proceedings. Overall, the bill aims to clarify the legal status of digital assets in criminal law while providing protections for property owners and refining the forfeiture process.

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