Last night while playing smuggled goods my opponent essentially passed the contraband from one unit to another, he did this by moving a unit adjacent to the unit carrying the contraband and then spending an action to retrieve the contraband. I thought this was brilliant because I had almost killed the unit carrying the contraband and would have been able to steal it during my next activation. But when the healthy unit took the contraband he was able to maintain control.

I had never seen or heard of anyone doing this before so I just wanted to check with you guys to see if this was legal? If not where does it specify that you cannot do this?

Thanks!

Your opponent cheated. Pg 22 RRG "Retrieving Tokens"

" A carried token cannot be retrieved by other figures, traded to other figures, or voluntarily dropped."

As above, can't do that