In brief
- Florida prosecutors have seized around $1.5 million in crypto tied to an overseas suspect.
- The wallet held AVAX, DOGE, PEPE, and SOL, with the losses reported by a resident to be at $47,421.
- The case shows how forfeiture doctrines are now being applied more easily to crypto, Decrypt was told.
Florida prosecutors have announced the seizure of about $1.5 million in crypto on Thursday after tracing funds from a Citrus County investment scam to a wallet tied to a Chinese national.
Attorney General James Uthmeier said the Office of Statewide Prosecution’s Cyber Fraud Enforcement Unit obtained a court order targeting assets held by Tu Weizhi, who is now charged with money laundering, grand theft, and an organized scheme to defraud.
“While scammers are changing their methods, I am proud of our Statewide Prosecutors’ ability to adapt and deliver justice,” Uthmeier said in a statement.
Investigators noted that the seizure began from a probe that rolled forward after a Citrus County resident reported in July 2024 that he had lost $47,421. The resident sent money to what appeared to be an online investment opportunity.
The investigations led the state on a trail to tie the funds with a wallet allegedly controlled by Tu. Rather than limit recovery to the original loss, prosecutors sought a seizure warrant over the full balance of that wallet.
The Attorney General’s office valued the seized holdings at roughly $1.5 million. The wallet “contained AVAX (Avalanche), DOGE (Dogecoin), PEPE (Pepe), and SOL (Solana) cryptocurrency tokens,” according to the statement.
Tu is believed to be in China. Florida authorities said he will be arrested if he attempts to enter the U.S.
Fugitive disentitlement and crypto seizures
The state carried out the seizure using Florida’s fugitive disentitlement framework, a provision that allows courts to move against assets tied to a criminal case when a defendant remains outside the jurisdiction.
In practice, it cuts off a suspect’s ability to use Florida’s courts to contest forfeiture, unless they appear to face the charges.
“This isn’t the first time U.S. law enforcement has seized assets in absentia, but what’s notable is how comfortably those doctrines now extend to crypto,” Angela Ang, head of policy and strategic partnerships for Asia Pacific at TRM Labs, told Decrypt.
As a framework, fugitive disentitlement “is built on a simple principle: you can’t ask U.S. courts to protect your property while refusing to face U.S. jurisdiction,” Ang noted.
“With the right tools, expertise, and cooperation from good actors, the transparency and traceability of public blockchains can actually make such seizures more feasible in crypto, not less,” she added.
Public notices for other Florida forfeiture actions this year show that agencies have pursued seizures involving wallets served by major exchanges and networks in counties including Citrus, Broward, and Marion.
“When law enforcement officers initiate new procedures, they often make numerous mistakes. Over time, attorneys point out those mistakes to the courts,” Leslie Sammis, a criminal defense and civil asset forfeiture attorney, explained in a post explaining the trend within the state, adding that courts “interpret the law and issue orders that limit the actions that law enforcement can take.”
Earlier this year, the Federal Trade Commission reported more than $12 billion in overall fraud losses from 2024, with investment schemes accounting for a significant share at roughly $5.7 billion. Separate industry data from the FBI’s Internet Crime Complaint Center shows that crypto investment fraud has generated around $9.3 billion in reported losses.
Decrypt has reached out for comment to the Florida Attorney General through its communications office, and this article would be updated should they respond.
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