Attorney General Bonta’s Sponsored Bill to Return Stolen Digital Assets to Victims Signed into Law

SACRAMENTO — California Attorney General Rob Bonta and Senator Tim Grayson (D-Concord) issued the following statements in response to Governor Gavin Newsom signing into law Senate Bill 1208 (SB 1208), legislation sponsored by Attorney General Bonta that combats the rapidly expanding problem of cryptocurrency scams by giving California law enforcement and prosecutors a new tool to return stolen digital assets to the victims of cryptocurrency fraud. 

“Cryptocurrency scammers can steal a family’s life savings in seconds and getting that money back shouldn’t take years of navigating legal uncertainty,” said Attorney General Rob Bonta. “SB 1208 will put California at the forefront of states’ efforts to combat cryptocurrency fraud and will help facilitate the return of stolen digital assets back to Californians. My office is grateful to Senator Grayson for introducing SB 1208 and to Governor Newsom for signing it.”

“SB 1208 will be a critical tool in California’s fight against scammers and our efforts to secure justice for fraud victims. Thanks to the Governor’s support, law enforcement agencies who are working hard to track stolen digital financial assets will now be better equipped to recover those funds and return them to their rightful owners,” said Senator Tim Grayson. “While more needs to be done to stop these fraudsters – many of whom belong to transnational criminal organizations – this law is a major step in improving the outcomes for victims of fraud and scams.”

Cryptocurrency scams have been estimated to result in over $75 billion stolen and laundered from 2021 to 2024 nationwide. In 2025, California ranked first among states in both the number of complaints and the number of reported losses due to cryptocurrency scams, more than $3.67 billion. Because cryptocurrency fraud investigations involve tracing assets through multiple transfers and comingled accounts, victims are often unable to trace the laundered assets themselves, and law enforcement who do seize assets in transit cannot always prosecute bad actors because they are outside the jurisdiction of American law enforcement. 

SB 1208 allows law enforcement who seize digital assets under a search warrant to seek distribution of those funds to criminal fraud victims when the assets are proceeds of, or used to facilitate, the underlying crime. This gives law enforcement a mechanism to return stolen cryptocurrency even when it has been commingled with other funds, as is common in multi-victim fraud schemes and organized money laundering investigations in California. Under the new law, law enforcement can petition the court to return to victims the cryptocurrency seized during a criminal investigation wherein a conviction is impossible because the perpetrators are outside U.S. jurisdiction. It also establishes a consistent procedure for claimants of the seized property to have an opportunity to establish the legitimacy of their claim. Any digital assets not distributed to victims will be ultimately deposited in the State Restitution Fund, administered by the California Victim Compensation Board, and used exclusively to provide victim services. 

Attorney General Bonta remains committed to helping Californians better understand cryptocurrency and the risks associated with investments, including by launching a webpage with resources on red flags, how to file a complaint, and precautionary measures. Further, while these scams are often carried out by international actors who are difficult to prosecute and arrest, the California Department of Justice (DOJ) is mitigating these scammers' effectiveness by shutting down fake websites used to entice victims with fictitious investment returns. In 2024, DOJ shut down 42 fraudulent websites that scammed innocent victims out of at least $6.5 million, with an average loss per victim of $146,306.