Florida Court Orders Kraken to Return $700K in Wrongfully Seized Crypto

In a landmark decision, a Florida court has ruled that over $700,000 in cryptocurrency must be returned to a European Union-licensed brokerage firm after being improperly seized by law enforcement. The Volusia County Sheriff's Office froze a Kraken exchange account tied to a $20,000 fraud investigation from Wisconsin, despite the firm's full cooperation. The court's ruling highlights growing scrutiny over law enforcement's handling of digital asset seizures and sets a precedent for protecting legitimate crypto businesses from overreach. This case underscores the need for clearer regulations and due process in cryptocurrency-related investigations.

Florida Court Orders Return of $700K in Improperly Seized Crypto

A Florida court has mandated the return of over $700,000 in cryptocurrency to a European Union-licensed brokerage firm, marking a significant rebuke of law enforcement's handling of digital asset seizures. The Volusia County Sheriff's Office improperly froze a Kraken exchange account linked to a $20,000 fraud investigation originating in Wisconsin, despite the firm's full cooperation.

The frozen assets—initially valued at $450,000—appreciated to $700,000 before detectives secured a sealed warrant to liquidate 1.19121 BTC. The case underscores growing tensions between crypto businesses and authorities over due process in asset seizures, particularly when third-party platforms like Kraken are caught in jurisdictional crossfires.