The release further argues that Liberty Dollars violate federal law: "Prosecutors with the United States Department of Justice have concluded that the use of NORFED's ‘Liberty Dollar' medallions violates 18 U.S.C. Section 486, and is a crime." (Many conservatives argue that the cited law is unconstitutional.)

In November 2007, the FBI raided Liberty Dollar facilities, taking, according to Priest, 200,000 ounces of silver backing paper notes and digital currency. Using today's exchange base, that's the equivalent of $4 million. Those precious metals remain in federal custody, he said.