‘Unclaimed’ Bitcoin in California could be seized—but there’s a catch

California lawmakers recently passed AB-1052, a bill that permits the state to seize unclaimed cryptocurrencies, including Bitcoin, after three years of inactivity. To prevent this, investors must demonstrate ownership interest in their digital assets at least once every three years.

Supporters assert the law helps retain Bitcoin’s form for recovery, while critics express worries about privacy and the impact on Bitcoin’s principles. Eric Peterson, a pro-Bitcoin advocate, emphasized that the law ensures seized Bitcoin is not liquidated.