Florida Seizes $1.5M Crypto in Fugitive Fraud Case

Florida’s Office of Statewide Prosecution announced the seizure of about $1.5 million in cryptocurrency on Thursday, tracing the funds back to an investment scam reported by a Citrus County resident in July 2024. The resident reported losing $47,421 after sending money to what appeared to be an online investment opportunity. The investigation led authorities to a cryptocurrency wallet allegedly controlled by Tu Weizhi, a Chinese national now charged with money laundering, grand theft, and an organized scheme to defraud.

Rather than limiting asset recovery to the victim’s specific loss of $47,421, prosecutors pursued and obtained a court order to seize the entire balance of the wallet, which the Attorney General’s office valued at roughly $1.5 million. The seized wallet contained a mix of four prominent cryptocurrencies: AVAX (Avalanche), DOGE (Dogecoin), PEPE (Pepe), and SOL (Solana). Attorney General James Uthmeier stated, “While scammers are changing their methods, I am proud of our Statewide Prosecutors’ ability to adapt and deliver justice.” Tu Weizhi is believed to be in China, and Florida authorities stated he will be arrested if he attempts to enter the United States.

The seizure was executed using Florida’s fugitive disentitlement framework, a legal provision that allows courts to act against assets tied to a criminal case when a defendant remains outside the jurisdiction. In practice, this doctrine cuts off a suspect’s ability to use Florida’s courts to contest asset forfeiture unless they appear to face the charges. Angela Ang, head of policy and strategic partnerships for Asia Pacific at blockchain intelligence firm TRM Labs, told Decrypt that while this isn’t the first time U.S. law enforcement has seized assets in absentia, “what’s notable is how comfortably those doctrines now extend to crypto.”

Ang explained that the fugitive disentitlement framework “is built on a simple principle: you can’t ask U.S. courts to protect your property while refusing to face U.S. jurisdiction.” She added a crucial insight regarding cryptocurrency’s inherent nature: “With the right tools, expertise, and cooperation from good actors, the transparency and traceability of public blockchains can actually make such seizures more feasible in crypto, not less.” This case exemplifies a growing trend within Florida, where public notices show agencies have pursued other crypto forfeiture actions this year involving wallets on major exchanges and networks across counties including Citrus, Broward, and Marion.

This seizure occurs against a backdrop of staggering losses from investment fraud. Earlier this year, the Federal Trade Commission reported more than $12 billion in overall fraud losses from 2024, with investment schemes accounting for a significant share at roughly $5.7 billion. Separate data from the FBI’s Internet Crime Complaint Center shows that crypto investment fraud specifically has generated around $9.3 billion in reported losses. The Florida case, where a $47,421 complaint led to a $1.5 million seizure, suggests prosecutors are aiming to disrupt scam operations at their funding source rather than merely making individual victims whole.

The increasing comfort of law enforcement with crypto seizures reflects an evolving legal and procedural landscape. As noted by criminal defense and civil asset forfeiture attorney Leslie Sammis, when law enforcement initiates new procedures, they often make mistakes initially. Over time, attorneys point out those errors to courts, which then “interpret the law and issue orders that limit the actions that law enforcement can take.” This case indicates a maturation process where legal doctrines like fugitive disentitlement are being tested, refined, and successfully applied to the novel challenges posed by digital assets like AVAX, DOGE, PEPE, and SOL, setting precedents for future enforcement actions.