South Dakota AG Marty Jackley Proposes Key Legislation to Combat Crypto-Fueled Crimes Amid Rising Scams
PIERRE, S.D. – In a bold move to tackle the growing menace of cryptocurrency-enabled crimes, South Dakota Attorney General Marty Jackley announced plans on Tuesday to introduce legislation that would empower law enforcement to seize digital currency accounts linked to criminal activities.[1][2][3]
The proposed bill marks the 10th piece of legislation from Jackley’s office for the 2026 South Dakota Legislative Session, which kicks off next Tuesday, January 13. It specifically aims to amend state seizure laws by adding “digital currency” as a seizable asset, addressing what Jackley describes as a critical gap in current statutes.[1][2]
A Haven for Criminals: The Crypto Threat in South Dakota
“Cryptocurrency has become a haven for scammers, drug traffickers, and human traffickers, costing South Dakotans millions in losses and fueling online crime,” Jackley stated in a press release from his office. “This legislation adds ‘digital currency’ to South Dakota’s seizure laws, giving law enforcement the tools to confiscate illicit crypto assets and disrupt criminal networks hiding behind digital secrecy.”[1][3]
The urgency of the measure is underscored by stark statistics from the FBI’s 2024 Internet Crimes Complaint Center (IC3) report. In South Dakota alone, cryptocurrency-related losses totaled $13.8 million that year. These figures stem from prevalent scams including romance frauds, extortion schemes, government impersonation cons, and bogus investment opportunities. Particularly alarming, victims aged 60 and older bore the brunt, accounting for $7.8 million of those losses.[1][2][3]
Jackley’s initiative comes at a time when digital currencies have exploded in popularity but also notoriety. Blockchain’s pseudonymity and borderless nature make it an attractive tool for illicit actors, from fentanyl distributors to online predators. By enabling seizures, the bill would allow investigators to trace and freeze crypto wallets involved in crimes, potentially returning funds to victims and dismantling operations.[4]
Part of a Broader Legislative Push
This cryptocurrency bill is one in a series of 10 proposed by the Attorney General’s office, reflecting a comprehensive strategy to bolster public safety and consumer protections in the digital age. Earlier announcements highlighted two other priority measures: one enhancing the Internet Crimes Against Children (ICAC) Task Force’s subpoena powers to track child pornography distribution, and another safeguarding genetic data privacy in response to concerns over companies like 23andMe.[5][6][7]
For the ICAC bill, Jackley cited a surge in cybertips—2,727 in 2025 alone, up 877 from the previous year—related to child sexual exploitation and trafficking. The genetic privacy proposal follows South Dakota’s participation in a 2025 multi-state lawsuit against 23andMe, accusing the firm of selling personal DNA data without consent.[5][7]
“As attorney general, I am committed to protecting children from online predators and safeguarding the privacy rights of all South Dakotans,” Jackley emphasized. “These legislative measures represent another important step toward achieving those goals.”[5][6]
Legislative Context and Next Steps
The 2026 session arrives amid a flurry of pre-filed bills, including measures for county commissioner removals and tax exemptions for data centers. Jackley’s proposals stand out for their focus on emerging tech threats, aligning with national trends where states grapple with crypto’s dual role as innovation driver and crime facilitator.[4]
Once formally filed, the bills will be accessible via the South Dakota Legislature’s website at sdlegislature.gov/Session/Bills/71. Additional details on the AG’s legislative package are available through his office’s media releases.[1][2]
Stakeholders, including law enforcement agencies and consumer advocates, have welcomed the crypto seizure proposal. “This is a game-changer for disrupting scams that prey on our seniors,” noted one ICAC task force member, speaking anonymously. Critics, however, may raise concerns over privacy implications, though Jackley frames the bill as narrowly targeted at criminal investigations.[2]
National Implications and South Dakota’s Stance
South Dakota’s push mirrors federal efforts, such as the FBI’s ongoing crypto tracing initiatives and IRS expansions into digital asset reporting. Yet, with states like Texas and New York already updating forfeiture laws for crypto, Jackley’s bill positions the Mount Rushmore State as proactive in the heartland.[1]
Local impacts could be profound. Romance scams, which often demand crypto ransoms, devastated elderly victims in 2024. Investment frauds promising quick riches lured others into Ponzi-like schemes. By seizing assets, authorities could not only deter crime but also provide restitution, a rarity in crypto cases.[3]
As the session nears, all eyes are on Pierre. Jackley’s office, led by Communications Director Tony Mangan (605-773-6878), promises further updates. Whether lawmakers prioritize this amid budget debates and other priorities remains to be seen, but the $13.8 million question looms large for South Dakotans.[1]
This developing story will be updated as bills progress. For more on South Dakota’s legislative agenda, visit official state resources.