The owners of Peanut The Squirrel are pursuing legal action over viral controversy

The owners of Peanut the squirrel are still in an emotional whirlwind after their beloved social media star was confiscated and euthanized by New York authorities… and now they're ready to fight back, according to reports TMZ.

Mark Longo and his wife, Daniellatell us they are already taking legal action…but they can't give too many more details at this point. But ML makes it crystal clear… “Peanut didn't die in vain!”

Their story spread across the country after they accused the state of abusing power and wasting taxpayers' money to confiscate and kill Peanut – all because of a few anonymous claims… which, according to ML, were all complete nonsense.

Since then, the couple has been flooded with messages on social media – with people sharing their sadness at the news and their anger at the allegations.

Mark tells us he's heartbroken…but also warmed by the support from strangers across the country, which he says will help get the answers he's demanding from county and state officials.

Mark previously told TMZ … New York State Department of Environmental Conservation officers showed up at his doorstep Wednesday with a search warrant signed by four state agencies and a judge.

Peanut and one of the couple's raccoons were taken away…both have since been euthanized due to rabies testing.

Peanut lived happily with him for seven years, spreading his joy on the Internet with funny and wholesome videos and becoming his best friend in the process, he told us.