Imagine criminals using Bitcoin or Ethereum to hide money from scams, hacks, or worse. Law enforcement wants tools to fight back. On January 6, South Dakota Attorney General Marty Jackley announced new bills to update state laws. One big change? A proposal to let police seize digital currency during criminal probes.
This move comes as crypto plays a bigger role in bad activities. Its fast transfers, no bank checks, and border-free moves make it perfect for crooks. But South Dakota’s laws don’t clearly say crypto counts as “property” that cops can grab. This bill fixes that gap.
Why Crypto Needs Clear Seizure Rules Now
Crypto’s rise has changed crime. Scammers use it for ransomware payments. Drug dealers swap it for cash. Fraudsters launder money through mixers. Federal agents already seize crypto – think IRS or FBI cases. Many states do too. But South Dakota lacks plain words in its laws.
Without clear rules, seizures face court fights. Judges ask: Is Bitcoin “property”? Courts say yes in general, but fuzzy state laws slow things down. This bill adds “digital currency” to the list of seizable items, like cash or cars used in crimes.
- Easy transfers: Send millions in seconds worldwide.
- No oversight: No banks to flag suspicious moves.
- Hard to trace: Privacy coins and wallets hide owners.
The bill doesn’t give new powers. It just says old rules cover crypto too. All seizures still need judge approval and follow U.S. Constitution rights.
What the Bill Does – Step by Step
At heart, the legislation tweaks South Dakota’s criminal codes. It lists “digital currency” as property cops can take if tied to crime. This matches how courts treat bank accounts or stocks.
Key points:
- Adds crypto to seizure lists.
- Applies to investigations and forfeitures.
- Keeps strong protections – no warrantless grabs.
- Helps preserve assets before trials.
Good news for cops: Faster action against crime wallets. For crypto holders: Proof your coins are safe if legit.
Update: Bill Moves Forward
Progress is quick. On January 15, the State Senate Judiciary Committee approved it. Now it heads to the full Senate. If passed, it goes to the House, then Governor Kristi Noem. Watch for votes soon – South Dakota moves fast on law updates.
You can read the full article at Blockmanity.