Use of criminal prosecution as a tool for redistribution of crypto assets: legal constructs, institutional incentives, and systemic risks

This report analyzes the practice of using criminal prosecution as a tool for the redistribution of crypto assets and control over digital financial flows. It examines legal and institutional mechanisms through which formally legitimate criminal procedures are used to block, seize, freeze, and subsequently redistribute digital assets. Particular attention is given to the political and economic incentives behind such law enforcement practices, the role of regulators, law enforcement agencies, and private infrastructure operators, as well as the consequences for property rights, trust in justice, and the stability of the crypto market.