Unclaimed crypto in California: when a dormant exchange account is sent to the state

Most people know that a forgotten bank account can end up with the state. Since 1 January 2026, California’s law says the same about crypto left in an exchange account. If you stop using an account for long enough and don’t respond to warnings, the coins can be sent to the State Controller’s Office.

This guide explains California’s rules under SB 822: which crypto they cover, what counts as activity, the notice you should receive, what happens to the coins and how to get them back. For keeping track of where your crypto is, see hot vs cold wallets.

How unclaimed property works in California

California’s Unclaimed Property Law involves three parties:

• the owner, who is entitled to the property;
• the holder, usually a business such as a bank or financial company, which has the property;
• the State Controller, who takes custody of property that goes unclaimed and handles claims.

The Assembly’s analysis of SB 822 explains that the system is based on custody, not ownership: the state holds unclaimed property as a trustee for the rightful owner. In general, property held by a business escheats, meaning it’s transferred to the state, after it has gone unclaimed for more than three years.

What SB 822 changed

According to the bill’s author, Senator Josh Becker, the law already covered bank accounts, stocks and insurance policies, but was silent on virtual currency, which led to confusion and underreporting. SB 822 fixes that. Governor Gavin Newsom signed it on 11 October 2025, and it took effect on 1 January 2026.

It applies to digital financial assets, as defined in California’s Financial Code: a digital representation of value used as a medium of exchange, unit of account or store of value that isn’t legal tender. That covers coins such as bitcoin and ether. The definition has exclusions, such as securities, certain merchant rewards points, and value used primarily inside online games. See California’s DFAL crypto license.

The law covers assets held or owing by a business association, such as a crypto exchange holding your coins. It applies mainly when your last known address with the business is in California, and SB 822 adds that for crypto, any description, code or other indication identifying the state is enough, even if it isn’t a full mailing address.

When crypto counts as unclaimed

Under SB 822, crypto held by a business escheats to the state if it’s unclaimed for more than three years from:

1. the date a letter, email or other message to you is returned undelivered; or
2. if you don’t receive messages from the business, or it can’t track whether they bounce, the date you last did something showing ownership of the account.

The law gives examples of acts that count as showing ownership:

• conducting a transaction, such as buying or selling crypto, or depositing or withdrawing money or other property, including recurring transactions you set up;
• logging in, or electronically accessing the account;
• activity on another account or property you have with the same business;
• any other action that reasonably shows the business you know the property exists.

Any of these, or contacting the business in writing, by phone or electronically, stops the three-year clock.

The warning notice

Before your crypto is reported to the state, the business must try to warn you:

• If it has a mailing address for you that isn’t known to be wrong, it must send a notice by certified mail, return receipt requested.
• If it has no mailing address and you’ve agreed to electronic notices, it may send the notice electronically.
• The notice goes out 6 to 12 months before the crypto becomes reportable to the Controller.

The notice must have a heading at the top saying that California requires the business to tell you your unclaimed property may be transferred to the state if you don’t contact it. It must explain when the crypto will escheat and that you’d then need to file a claim to get it back. In bold or larger type, it must also say that there’s been no sign of your interest, identify the asset, and warn that it’s in danger of escheating.

It includes a form from the Controller to confirm your address. If you sign and return it, the account is no longer treated as inactive and the period starts again. Instead of the form, the business can give you a phone number or electronic way to get in touch, and that contact restarts the period too.

What happens to the crypto

If you don’t respond, the business reports the crypto to the Controller. Then:

• Within 30 days after the deadline for that report, the business must transfer the exact type and amount of crypto, with the private keys, unliquidated, to the Controller’s cryptocurrency custodian or as the Controller designates. In other words, it doesn’t sell your coins first.
• A business that holds only part of the keys must try to get the rest within 60 days of finding the crypto is eligible to escheat, and keep it until it can transfer it.
• The Controller may choose one or more custodians to look after escheated crypto. Each must hold a license from California’s financial regulator, the DFPI, under the state’s crypto licensing law.
• The Controller converts the crypto to dollars at prevailing prices no sooner than 18 months and no later than 20 months after the business’s report is filed.

The timeline at a glance

How to claim

The State Controller’s Office runs a search at claimit.ca.gov, where you can look up property in your name. SB 822 sets out what you get back:

• if the Controller still holds the crypto, a person making a valid claim is entitled to the crypto itself;
• if it has been converted, you get the net proceeds of the sale.

The Assembly’s analysis says there’s no time limit for owners to claim under California’s law, and that the Controller considers each claim within 180 days of filing. You can search and claim yourself, so be wary of anyone who contacts you offering to “recover” crypto for a fee: recovery offers are a common scam. See crypto recovery scams.

How to keep your crypto out of it

• Log in from time to time. The law treats electronic access to your account as a sign of interest.
• Keep your contact details up to date. A returned letter or email can start the three-year clock.
• Open your mail. A certified letter about unclaimed property is worth answering, because returning the form restarts the period.
• Keep a record of your accounts somewhere your family can find it. See crypto inheritance.

If you’ve lost track of an old account, try contacting the exchange first. If the crypto has already been transferred, search claimit.ca.gov. If you live outside California, your state has its own unclaimed property rules.