Crypto and criminal law: money laundering, seizure and confiscation

Owning or trading cryptocurrency is not a criminal offence in the Netherlands; criminal law comes in when the origin of the assets is criminal or when crypto is used for fraud. In practice, cases run along four routes: money laundering under Articles 420bis to 420quater of the Dutch Criminal Code (Wetboek van Strafrecht, Sr), fraud through crypto platforms, seizure of wallets and exchange accounts, and confiscation of illegally obtained gains under Article 36e Sr.

Crypto is less anonymous than many people think. Since 30 December 2024, crypto-asset service providers in the EU fall under the Markets in Crypto-Assets Regulation (MiCA), and transfers must carry information on sender and recipient. This makes it easier for investigators to link transactions to a person.

When does crypto lead to a money laundering suspicion?

A suspicion of money laundering arises when you receive, exchange or move crypto while there are indications of a criminal source and you cannot explain the origin. The offence is defined in Articles 420bis to 420quater Sr, which cover intentional, habitual and culpable money laundering.

The Money Laundering and Terrorist Financing (Prevention) Act (Wwft) does not create the offence. It imposes customer due diligence and reporting duties on institutions such as exchanges, which report unusual transactions to FIU-the Netherlands (FIU-Nederland).

Do you have to prove where your crypto comes from?

Not by default. The Public Prosecution Service (Openbaar Ministerie, OM) must first present facts that give rise to a reasonable suspicion of money laundering, such as missing records, transactions through unregulated platforms or the use of mixers.

Only then can you be expected to give a concrete and verifiable explanation of a legal origin. If that explanation is missing or cannot be checked, the court may weigh this as part of the evidence. It does not on its own replace the evidence the OM must provide.

Which records help you?

Good records are your best defence and are also needed for your tax return with the Belastingdienst. Keep:

• purchase and sale confirmations and bank statements of deposits and withdrawals;
• transaction overviews from every exchange you use;
• wallet addresses and transaction hashes;
• proof of income from mining, staking or other sources;
• correspondence about loans, gifts or transfers.

What role do exchanges play in an investigation?

Exchanges are often the link between a wallet and a person. Since 30 December 2024, crypto-asset service providers need a MiCA licence; in the Netherlands the Authority for the Financial Markets (AFM) grants it, and the Dutch transitional period for providers registered with De Nederlandsche Bank ended on 30 June 2025.

Under the recast Transfer of Funds Regulation (Regulation (EU) 2023/1113), crypto transfers must carry information on the originator and the beneficiary. As a result, exchange records are often decisive in an investigation.

Using an unregulated platform, a mixer or a privacy coin is not illegal in itself. European rules treat these as risk factors, so they lead to extra questions about origin and destination. Whether you knew of a criminal origin depends on all the circumstances.

Can the police seize your crypto?

Yes. Under the Code of Criminal Procedure (Wetboek van Strafvordering, Sv), investigators can seize wallets and exchange accounts: under Article 94 Sv to establish the truth or because the assets can be confiscated, and under Article 94a Sv to secure a future confiscation order.

Seized crypto is often converted into euros to limit the price risk. If the crypto is later returned, the actual sale proceeds are in principle the starting point, not the price on the date of seizure. If you believe the conversion was careless or too late, you must state and substantiate this.

What about hardware wallets and seed phrases?

Access to crypto can depend entirely on a private key, PIN or seed phrase. Too many wrong PIN attempts or damage to a device can make the assets permanently inaccessible.

The defence can therefore ask for expert supervision when a wallet is unlocked, for a record of who manages the PIN or seed phrase, and for a forensic copy or inventory before further steps are taken.

How does confiscation of crypto gains work?

After a conviction, the OM can start separate confiscation proceedings under Article 36e Sr. The court then estimates the illegally obtained gain on the basis of lawful evidence; read more about the confiscation order.

Legal assets, costs that are directly linked and amounts already paid must be taken into account. If legal and criminal assets are mixed in one wallet, this does not automatically mean the entire balance is confiscated. Purchase records and a consistent trading history help the court separate the legal part.

How do investigators use blockchain analysis?

Investigators use software that maps transaction patterns and groups wallets that are presumed to belong to the same person. Combined with exchange data, IP addresses, bank statements or your own statement, this can produce strong evidence.

The analysis is not infallible: a wallet may be shared, may have changed hands or may belong to a service using shared addresses. The defence checks each link step by step: from address to wallet, from wallet to account, and from account to the suspect. Unlawfully obtained evidence can, in certain circumstances, be excluded.

What are the tax and international aspects?

Undeclared crypto assets can lead to additional tax assessments and fines from the Belastingdienst and, in serious cases, prosecution for tax fraud. Exchanges share data with the tax authorities, also across borders.

A voluntary correction can sometimes limit the consequences, but the legal options for this have been restricted in recent years. Because exchanges, servers and suspects are often in different countries, the OM relies on international legal assistance, European Investigation Orders, Europol and Eurojust. The defence can test whether evidence obtained abroad was gathered and transferred lawfully.

What should you check as a suspect?

If the police contact you, search your home or seize your wallet, the first days matter most. Check these points:

• Use your right to remain silent until you have spoken with a lawyer.
• Ask for a copy of the record of the seizure and note which devices and accounts were taken.
• Collect exchange overviews, bank statements, wallet addresses and tax returns that show the origin of your assets.
• Check whether the seizure is based on Article 94 or 94a Sv; this determines what you can ask back.
• Consider a complaint (klaagschrift) to the court against the seizure.

What should you check as a victim of crypto fraud?

Fake investment platforms, phishing, malicious apps and fraud via dating apps (pig butchering) are common. Transactions on a blockchain are hard to reverse, so speed counts.

• Contact the exchange or service provider immediately and ask it to block the funds.
• Save transaction hashes, wallet addresses, screenshots and all correspondence.
• File a report (aangifte) with the police.
• Have it assessed whether a civil prejudgment attachment (conservatoir beslag) on traceable assets is possible.
• Remember that a criminal case does not automatically compensate your loss; a civil claim is often needed as well.

What can we do for you with a crypto criminal case?

Our criminal lawyers assist suspects and victims in crypto cases:

• We prepare you for a police interview and attend it with you.
• We map the origin of your crypto assets using your exchange and bank records.
• We file a complaint against the seizure of your wallet or exchange account.
• We test the blockchain analysis and the way evidence was obtained, including abroad.
• We defend you in confiscation proceedings under Article 36e Sr.
• For victims, we prepare the report and assess a prejudgment attachment.

Summary

• Owning crypto is legal; a criminal origin or use for fraud makes it a criminal law matter.
• Money laundering is defined in Articles 420bis to 420quater Sr; the OM must first show a reasonable suspicion.
• Wallets and exchange accounts can be seized under Articles 94 and 94a Sv, and gains confiscated under Article 36e Sr.
• Since MiCA and the recast Transfer of Funds Regulation, exchange records often decide the case.
• Good records of purchases, transfers and income protect you in both criminal and tax matters.

Frequently asked questions