The Federal Bureau of Investigation (FBI) is facing backlash over what critics call an unconstitutional seizure of 800 safety deposit boxes at U.S. Private Vaults in Beverly Hills, containing approximately $86 million in cash, jewelry, and thousands of gold and silver bars. The warrant, signed by U.S. Magistrate Steve Kim, explicitly stated: "This warrant does not authorize a criminal search or seizure of the contents of the safety deposit boxes." Despite this, the FBI confiscated all items. At least 11 lawsuits have been filed by box holders against the federal agency.
Lawyers: Government Seized First, Searched Later
Attorney Benjamin Gluck, representing many box holders, argues the FBI lacked probable cause. He told Reason: "The government can't take stuff without evidence in the hopes that you're going to get it later. The Fourth Amendment requires the opposite." Gluck also accused federal agents of holding people's money "hostage" to extract private information, adding that some possessions may have been lost due to careless handling.
Joseph Ruiz, a box holder who lost $57,000 in cash from legal settlements, said: "They just kind of stole my money. I'm made out to be a criminal, and I didn't do anything." His attorney, Robert Frommer of the Institute for Justice, wrote in the Orange County Register: "The Constitution does not abide guilt by association. The government cannot search every apartment in a building because the landlord is involved in a crime." Frommer noted that innocent owners are forced to sue the government just to get their property back.
FBI Insists Items 'Related to Criminal Activity'
FBI spokesman Thom Mrozek denied any misuse of authority, stating: "We have some basis to believe that the items are related to criminal activity." He referenced civil forfeiture rules where large amounts of cash held by someone with no legitimate income can be subject to seizure. However, attorney Jeffrey B. Isaacs, representing an anonymous box holder, called the raid "one of the most profound illegal searches and seizures" he has ever seen, accusing prosecutors of "extorting people into exposing their identities."
Crypto's Advantage in Asset Protection
The controversy highlights the appeal of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), which are far harder to confiscate than physical cash or valuables. Over the past decade, countless cases have shown law enforcement seizing life savings from travelers carrying cash or precious metals. From 2000 to 2019, U.S. federal civil forfeiture programs raked in an estimated $46 billion, with little oversight. Human rights groups call this "policing for profit." In the Beverly Hills case, box holders are fighting to reclaim their assets through the courts, while the crypto community points to decentralized assets as a safeguard against government overreach.