How to Lose Your Crypto Without Doing Anything

The crypto bill recently approved by the California State Assembly contains a truly unprecedented clause:

• If a custodially held crypto account remains inactive for three years (no logins, no trading, no withdrawals), the funds are classified as "unclaimed" and can be seized by the state.

When Trump was elected president, I once speculated that the Bitcoin reserve he promised might be sourced from coins confiscated from criminals but never returned to victims. But California may have found a more creative route: lock someone up for three years, and you can legally take their crypto — even if it has nothing to do with the alleged crime.

And you don’t even need a conviction. How long did Julian Assange spend behind bars before pleading guilty? More than three years? What about crypto entrepreneurs accused of crimes but not yet proven guilty? California prosecutors might now have one more reason to keep someone in custody if they refuse to take a plea.

But the bill includes one excellent clarification: these rules do not apply to non-custodial wallets. It almost feels like the bill was designed to teach people the right way to store their crypto.

If that’s the case, I fully support it.

Take custody of your crypto.
And when it’s time to swap - use rabbit.io.