Do I Need an Attorney to Fight an Asset Forfeiture?
If the Government has seized your cryptocurrency, cash, or other property in a civil asset forfeiture case, you may be wondering: Do I need an attorney to fight a forfeiture?
Technically, the answer is no. There is no requirement to hire an attorney.
Although you are not forced to have representation, exercising your right to have counsel, especially by choosing a forfeiture lawyer with experience, can make all the difference in successfully reclaiming your property.
Here’s how:
- Case Study: Successful $595,000 Recovery for $1.2 Million Investment
- Filing a Claim: Successful Strategy for Asset Forfeiture
- Our Strategy: Tracing and Constructive Trust Theory
Case Study: Successful $595,000 Recovery for $1.2 Million Investment
In the federal forfeiture case United States v. $1,296,912.00 in Bank Funds in Cathay Bank Account ‘0462, et al. (Case No. 2:24-cv-7169-MWC-JC), multiple victims were defrauded into investing in fake cryptocurrency exchange sites, such as Bakktig.com, which posed as Bakkt.com. In total, victims were scammed out of over $10 million.
San Diego Defenders – Forfeiture Law Firm represented one of the claimants, who had wired a total of $1,296,912 to Bakktig.com for investment purposes. They were a victim of confidence fraud. Utilizing our in-depth knowledge of forfeiture law, our firm successfully recovered $595,000 from the Department of Justice, which is about 46% of the amount our client had invested.
Here’s why hiring the right forfeiture lawyer matters.
In comparison, another claimant in the same case (referred to as TFT) invested over $8.3 million and recovered only about $325,000, or 4% of their total loss, after being represented by other counsel. They invested almost eight times as much money as our client and received a lesser amount in return.
This incredibly stark contrast highlights a crucial point: while all victims suffered, an attorney’s methods can significantly impact the outcome of your civil asset forfeiture case.
Filing a Claim: Successful Strategy for Asset Forfeiture
We successfully fought our client’s cryptocurrency forfeiture by submitting a claim within the required short time frame after the government issued its forfeiture notice.
Too often, individuals attempt to file themselves or wait too long to take action. Either mistake can jeopardize your ability to recover anything at all.
Artificial intelligence tools and some websites may tell you that you don’t need an attorney for a civil forfeiture case. And technically, they’re right. But without deep knowledge and experience in civil asset forfeiture, many self-represented parties or parties with inexperienced lawyers walk away with little to nothing.
As the old adage goes, “an attorney who represents himself has a fool for a client.” That maxim applies to a layperson who represents themselves as well.
Our Strategy: Tracing and Constructive Trust Theory
In the United States v. $1,296,912.00 in Bank Funds in Cathay Bank Account ‘0462, et al. case, Attorney Daniel Smith, with co-counsel, conducted a thorough legal analysis grounded in recent Ninth Circuit precedent. Our team argued that, under California law, a fraudster holds the victim’s funds in a constructive trust from the moment the fraud is committed. Therefore, our client had a legal ownership interest in the exact funds that were seized from the Cathay Bank account.
Our legal memorandum relied on cases (such as United States v. Cornerstone Equity Fund, LLC) affirming that courts should prioritize returning traceable funds to the rightful owner rather than dividing them “proportionately” among all victims. This is a powerful legal strategy that successfully worked in our client’s favor and ensured the return of their property after being defrauded.
Call San Diego Defenders – Forfeiture Law Firm Today!
At San Diego Defenders – Forfeiture Law Firm, Attorney Daniel Smith brings over 35 years of experience in federal defense. Our firm has successfully handled forfeiture cases across various federal agencies. See our recent results here.
San Diego Defenders – Forfeiture Law Firm is currently accepting cryptocurrency seizure cases with sufficient supporting documentation and information. Let our experience put up the highest fight for the return of your property.
This includes “U.S. v. All Virtual Currency Held in the BTC-E Operating Wallets As Of July 25, 2017 and other described assets further described herein” (Case No. 1:25-CV-02085) and “U.S. v. 4,340,000 Tether (“USDT”) Cryptocurrency, Valued at Approximately $4,340,000, et al.” (Case No. 1:25-CV-0386).
Call us today at (619) 258-8888 for a free, confidential consultation. The difference between a 4% and 46% recovery may come down to who’s fighting for you. We offer payment plans and contingency fee agreements, where we don’t win until you do!
