I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article:
https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?
Theoretically no, but in practicality it can be. The difference is can they prove you have bitcoins, if you are using something like coinbase for example and give your KYC information to them and make money and so forth, they will ask for your taxes and if you do not provide them that they will try to confiscate something from you, starting from more "real" stuff but can work their way into coinbase as well.
Nothing like that has happened as far as I know but doesn't mean it can't be. However if you are using something without any name that means nobody really knows you have bitcoins anywhere and they can't confiscate something they don't know about. Charlie Shrem recently got burned about it because he failed to pay a million dollars in back taxes whereas he bought a bunch of stuff with bitcoin. Nobody could trace his bitcoins but it is obvious he has some.