safetytips

The thought of your hard-earned crypto being "seized" by the state sounds like a horror movie plot, but in 2026, it’s a legal reality known as Escheatment.
Laws like California’s SB 822 essentially treat your digital wallet like an abandoned bank account if you go silent for too long.
The good news? Keeping your assets safe doesn't require much work—it just requires attention. Here is your guide to making sure your crypto stays exactly where it belongs.
1. The "Proof of Life" Login
The most important thing to know is that "activity" isn't just about spending money. Most states consider an account "active" if you simply show up.
What to do: Set a recurring calendar invite for every 6 months to log into your exchange accounts.Why it works: Under the 2026 rules, "electronic access" or "logging in" often counts as an act of ownership. It’s like waving hello to the exchange so they know you haven't forgotten them.
2. Move Your "Dust" and "Holdings" Around
If you have small amounts (dust) or long-term holdings that you never touch, the exchange's automated system might flag you as inactive.
What to do: Once a year, make a tiny trade or transfer. Sell $5 of Bitcoin for USDC, or move a small amount from your "Trading" wallet to your "Funding" wallet within the app.Why it works: A transaction creates a fresh timestamp on the blockchain or the exchange’s internal ledger. It’s the ultimate proof that the owner is still at the wheel.
3. Update Your "Digital Emergency Contact"
The state can only start the seizure process if they try to contact you and the message "bounces" back.
What to do: Go into your settings and make sure your email address and physical address are 100% current.Why it works: California’s law specifically triggers 3 years after a communication is "returned undelivered." If your email is active and you see their "Are you still there?" messages, you can stop the process with one click.
4. Consider "Self-Custody" (The Ultimate Safety Net)
The state typically goes after exchanges (like Coinbase, Kraken, or Binance) because they are centralized businesses that have to follow state laws. They generally cannot "escheat" a hardware wallet sitting in your desk drawer.
What to do: For the coins you plan to hold for 5+ years, move them to a cold storage wallet (like a Ledger or Trezor).Why it works: You own the private keys. There is no middleman for the state to send a "seizure warrant" to. You are your own bank.
5. Watch Out for the "California Silver Lining"
If you do live in California, there is one bit of good news from the latest 2026 updates: the state is now required to keep your unclaimed crypto in its original form (Bitcoin remains Bitcoin) for at least 18 months rather than immediately selling it for cash. This means if you realize late that your account was seized, you might still get your actual coins back instead of just a check for what they were worth years ago.
Quick Summary Checklist:
[ ] Log in to all exchanges today.[ ] Confirm your email address is correct.[ ] Perform one tiny "internal transfer" or trade.[ ] Set a "Check Crypto" reminder for July 2026.
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