CONFISCATION OF THE PROCEEDS OF CRIME IN CASES INVOLVING VIRTUAL ASSETS

Abstract

In the context of the increasing prevalence of cyber and financial crime, technological advancements and the emergence of virtual assets such as cryptocurrencies, tokens, and non-fungible tokens (NFTs) have generated new challenges for criminal law, particularly with regard to the confiscation of the proceeds of crime. The decentralized nature of these assets, the anonymity of transactions, and the volatility of their value significantly hinder the identification, seizure, and recovery of assets obtained through illicit means.
The paper examines a number of conceptual, substantive criminal law, and procedural difficulties related to the application of precautionary measures and special confiscation as regulated by the Criminal Code and the Criminal Procedure Code, in light of the specific characteristics of digital assets, with reference also to relevant European legislation. It addresses issues such as the localization of virtual assets within the legal sphere, the identification of the beneficial owner of a digital wallet, international judicial cooperation in cross-border cases, and the challenges associated with the enforcement of confiscation measures.
At the same time, the paper highlights the risks of inefficiency in combating cybercrime from the perspective of confiscation, as well as the need to adapt the legal framework to emerging technological realities, with a view to identifying a balanced approach between safeguarding the public interest and strengthening confidence in the ability of the criminal justice system to respond effectively to new forms of digital criminality.