The District Court of Puerto Rico found Juan Carlos Reynoso guilty of contempt of court after he refused to voluntarily transfer seized bitcoins to a government-controlled wallet.
According to case materials, in June 2024, during an investigation involving the defendant, FBI agents discovered a laptop with Ledger hardware wallet software installed.
On January 31, 2025, the court issued a warrant to seize 119.65 BTC (approximately $12.6 million at the time). However, Reynoso moved the funds to five addresses he controlled within a day.
Subsequently, the defendant attempted to argue in court that the confiscation order violated the Fifth Amendment regarding the government’s unreasonable seizure of property. The court dismissed this motion, as the asset seizure was conducted due to legal violations. Moreover, the transfer of bitcoins was direct evidence of access to the funds and the ability to comply with the order.
Reynoso was detained in court. Until the 119.65 BTC are transferred to the government wallet, he will pay $10,000 for each day of delay. Failure to comply may result in additional fines and even imprisonment.
Earlier, ForkLog reported that US authorities will return $8.2 million seized from criminals who obtained it through a “random number” scheme.