The state attorney general’s office said Gov. signed Senate Bill 1208 into law, a measure sponsored by Attorney General that creates a process to return stolen digital assets to cryptocurrency fraud victims.
The law allows law enforcement who seize digital assets under a search warrant to petition a court to distribute those funds to criminal fraud victims when the assets are proceeds of, or used to facilitate, the underlying crime; the office said the tool applies even when assets are commingled, which is common in multi‑victim schemes and organized money‑laundering investigations.
The attorney general’s office said the procedure covers cases in which a conviction is impossible because perpetrators are outside U.S. jurisdiction; the law also requires a consistent claims process so petitionants can establish the legitimacy of their claims.
Any digital assets not distributed to victims will be deposited in the State Restitution Fund, administered by the California Victim Compensation Board, and used exclusively for victim services, the office said.
The DOJ cited national and state statistics to explain the need for the law; it said cryptocurrency scams have been estimated to result in over $75 billion stolen and laundered from 2021 to 2024, and that in 2025 California ranked first among states in reported complaints and losses, with more than $3.67 billion lost.
Attorney General Bonta said, "Cryptocurrency scammers can steal a family’s life savings in seconds and getting that money back shouldn’t take years of navigating legal uncertainty."
The attorney general’s office said the department will keep publishing consumer resources on red flags and how to file complaints, and that it has moved to shut down fraudulent websites; in 2024 the DOJ said it took down 42 sites that scammed victims out of at least $6.5 million, with an average loss per victim of $146,306.
Practical effect for Californians: victims whose assets are seized in investigations may now have a clearer path to recovery without a criminal conviction, when prosecutors cannot reach the perpetrators; assets not returned to victims will be directed to programs that provide victim services.
State
Rob Bonta
Attorney General · Democrat
Named 3 times in this story.
Portrait: Official portrait
State
Gavin Newsom
Governor · Democrat
Named 2 times in this story.
Portrait: Official portrait
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