Reconstruction of the Formulation of Criminal Asset Forfeiture in the Form of Cryptocurrency in Indonesia Based on the Value of Justice

The national legal system does not yet have adequate and specific regulations to regulate the confiscation of digital assets resulting from crime, especially blockchain-based assets such as cryptocurrency. This study aims to analyze the reasons for the ineffectiveness of digital asset confiscation, identify regulatory and institutional weaknesses in practice, and formulate a normative reconstruction design oriented towards substantive justice values. The methodology used is a normative legal approach and empirical legal approach based on the theory of the rule of law, law enforcement theory, and criminal policy. The research findings indicate that the absence of a comprehensive legal framework, weak law enforcement capacity, and suboptimal inter-agency coordination are key factors hampering the effectiveness of criminal confiscation, especially of digital assets. Furthermore, the conventional legal system, which relies on criminal evidence against the perpetrator, results in many assets resulting from crime being unable to be confiscated because the perpetrator has fled or the assets have been transferred to third parties. Therefore, this dissertation proposes a reconstruction of the asset confiscation formulation, encompassing the definition of digital assets, tracking mechanisms, blocking, reverse burden of proof, asset management, and international cooperation. The reconstruction is expected to serve as a basis for the development of relevant specific laws and serve as a practical reference for fair and effective modern law enforcement in the digital era.