Attachment of cryptocurrency in criminal proceedings: how to act and how to lift it

Vitalii Petryk

Attorney at law · Lexon (LF LEXON)

An attachment on cryptocurrency in criminal proceedings means that you temporarily cannot dispose of your assets freely. Below attorney Vitalii Petryk explains how this happens, what to do straight away and how to seek the lifting of the attachment.

Can cryptocurrency be attached

Yes. In criminal proceedings cryptocurrency and virtual assets are treated as property, so an attachment can be imposed on them (Article 170 CPC). In practice courts do attach virtual assets, and at the same time there is practice of lifting such attachments, so this is not a dead end.

Who imposes an attachment and on what grounds

An attachment is imposed by a ruling of an investigating judge on the application of an investigator or prosecutor (Article 170 and following CPC). The investigating judge must verify whether there are grounds and whether the attachment is proportionate. Study the ruling carefully: what exactly is attached, to what extent and on what grounds.

What to do immediately after an attachment

1. Obtain and study the attachment ruling: its scope and grounds.
2. Record exactly how access to the assets has been restricted.
3. Do not attempt to move assets quickly, as this may worsen the situation.
4. Preserve evidence of the lawful origin of the funds and of your title to the wallet.
5. Involve a lawyer immediately to assess the prospects of a challenge.

How to lift an attachment

The main route is an application to cancel the attachment (Article 174 CPC). Grounds: the need for the attachment has ceased, it is disproportionate, it was imposed in breach or it covers property unconnected with the proceedings. Separately, if the proceedings are closed, measures to secure them, including attachment, cease to apply (Article 132(4) CPC). An attachment may also be lifted on appeal against the ruling.

Specific features of crypto assets

With crypto everything comes down to access: private keys, seed phrases, wallets and exchange accounts. The important questions are proof of title to the assets, their valuation and safe storage during proceedings. Mistakes with access can cost you the assets, so any steps should be agreed with a lawyer.

Mistakes to avoid

Do not move assets around the attachment. Do not hand over private keys without understanding the consequences. Do not explain the origin of funds without a lawyer. Do not miss the deadlines for appealing against the ruling.