FBI wins against convicted fraudster in $345 million Bitcoin dispute.
A convicted fraudster has lost his appeal against the US government after claiming federal agents destroyed a hard drive containing his cryptocurrencies - worth over $345 million.
Michael Prime claimed that an orange external hard drive that was confiscated from him contained 3443 Bitcoins, and he wanted it back upon his release from prison. The government told him that the devices could only be returned if he provided the passwords within 30 days; otherwise, they would be erased or destroyed.
The district court denied his request, stating that the hard drive had been properly destroyed and Prime had no right to it. His lawyer argued that the Bitcoin did not exist other than what Prime had used to buy cars, boats, and property several years ago.
Prime claimed to own about 3500 Bitcoins, but an investigation revealed that he had officially declared only $200 to $1,500 in the cryptocurrency. He had cited this as his only asset before his conviction.
In his appeal, Prime invoked Rule 41(g), claiming that the government had wrongfully destroyed the device and that he had failed to disclose the amount of Bitcoin. The Court of Appeals rejected this claim, noting that the plea agreement required full and honest disclosure of all assets.
The judges also noted that Prime had not acted immediately to request the return of the hard drive, but delayed for over a year. This delay influenced the decision not to allow the return.
The judges concluded that, even if Bitcoin had existed, its return would be unequal, upholding the district court's decision: the government has no obligation to return the hard drive or the alleged cryptocurrency. /Telegraph/
