Individual Identified Faces Financial Penalty for Hiding Seized 119.65 Bitcoin Assets
In a landmark decision, a district court in Puerto Rico has found Juan Carlos Reynoso guilty of contempt of court following his refusal to voluntarily transfer seized bitcoins to a government-controlled wallet.
The court case documents reveal that the FBI seized a laptop in June 2024, which boasted software for a Ledger hardware wallet. As part of an ongoing investigation, the court issued an order on January 31, 2025, to seize 119.65 BTC, equivalent to approximately $12.6 million at the time. However, within 24 hours, Reynoso transferred the funds to five separate addresses under his control.
In an attempt to quash the seizure order, Reynoso argued in court that it violated the Fifth Amendment's protections against unlawful government confiscation of property. The court dismissed this motion, upholding the legality of the asset seizure, and citing direct evidence of Reynoso's control over the funds from the bitcoin transfer.
Subsequently, Reynoso was apprehended in court proceedings. Penalties for his non-compliance involve a daily fine of $10,000 until the 119.65 BTC are transferred to the government's wallet. Continued non-compliance could lead to further penalties, including imprisonment.
Previously, our news outlet reported on a planned return of $8.2 million in cryptocurrency seized from criminals perpetrating a "random number" scam by U.S. authorities.
When individuals refuse to comply with legal orders to transfer seized assets, such as cryptocurrencies, serious legal consequences may ensue. These may include contempt of court, criminal charges, frozen assets, civil penalties, and potential loss of rights, as is the case with Reynoso. Each jurisdiction applies varying laws and court decisions in such matters, making it crucial for a precise understanding of the specific case and relevant legal rules. Consulting legal documents or seeking legal counsel is advisable.
- This case serves as a reminder that the refusal to comply with court orders regarding Bitcoin transfers could lead to contempt of court charges, as seen in the Reynoso case.
- The business world, including technology-centric sectors like finance and cryptocurrency, must remain vigilant about adhering to legal orders to avoid potential consequences such as asset seizures and criminal charges.
- The general news landscape has been impacted by the increasing prominence of cryptocurrency-related cases, especially those involving criminal activity, such as the seizure of Bitcoin worth millions from criminals perpetrating a "random number" scam.
