On June 4, 2024, Connecticut Governor Ned Lamont signed Senate Bill 6990 into law, making significant changes to the state’s asset seizure and forfeiture statutes by expressly including virtual currency and digital wallets as property subject to forfeiture. The new provisions, which will take effect on July 1, 2026, clarify that “property” for purposes of state seizure and forfeiture now encompasses virtual currencies, digital wallets, and any contents held within those wallets. This legislative update resolves prior ambiguities and provides law enforcement with explicit authority to seize and forfeit digital assets in connection with criminal offenses such as larceny.
This amended law permits state and local agencies to seize digital wallets even when those wallets contain a mixture of digital and traditional assets, removing previous limitations related to commingling. As a result, Connecticut law enforcement is now positioned to more directly address the use of virtual currencies in criminal activity. For individuals and businesses holding digital assets in Connecticut, the law introduces increased risk that those assets may be seized if they are alleged to be involved in unlawful conduct. The legislative change also heightens compliance considerations for businesses and individuals engaged in transactions involving virtual currency, highlighting the need for robust internal controls to reduce potential exposure. Connecticut’s amended law reflects a broader national trend of states updating legal frameworks to account for the growing prevalence of digital assets in both legitimate and illicit contexts.
