Cryptocurrency Seizure and the BTC-e Case Update
Victims of crypto scams, such as Bitconnect or BTC-e, often learn the hard way that the legal system works differently from the crypto world.
Many people believe that submitting detailed documentation with a petition to the Department of Justice’s Money Laundering and Asset Recovery Section (MLARS) would be enough to reclaim their lost funds.
But if you’re handling a cryptocurrency federal forfeiture involving seizures under 18 USC § 981 or 18 USC § 982, filing a petition with MLARS instead of a claim with an attorney could waste your time and cost you your investment.
Do not handle this alone, and do not wait to contact an attorney. San Diego Defenders – Forfeiture Law Firm at (619) 258-8888 has extensive experience in successfully fighting federal asset seizures. We offer free, confidential consultations. See our recent results here.
- United States v. BTC-e Wallets (1:25-cv-02085)
- Successful Case Result: Cryptocurrency Returned By San Diego Defenders After Client’s Failed Petition
United States v. BTC-e Wallets (1:25-cv-02085)
A current major federal forfeiture case, United States v. All Virtual Currency Held in the BTC-e Operating Wallets as of July 25, 2017 (1:25-cv-02085), is targeting Bitcoin, Ether, Litecoin, and other assets once held on the BTC-e exchange.
The U.S. government alleges BTC-e laundered over $9 billion in criminal proceeds for ransomware actors, darknet vendors, and hackers.
Alexander Vinnik, one of BTC-e’s main operators, pleaded guilty in 2024 to conspiracy to commit money laundering, admitting BTC-e was used worldwide to move illicit funds.
As a result, victims can now file to regain their lost BTC-e account investments.
San Diego Defenders is currently open to taking administrative claims for the BTC-E case. Call our office at (619) 258-8888 for a free, confidential consultation. Attorney Dan Smith has over 35 years of experience in federal defense.
Successful Case Result: Cryptocurrency Returned By San Diego Defenders After Client’s Failed Petition
A recent client of ours fell victim to the infamous Bitconnect crypto fraud scheme involving Glenn Arcaro.
As described in a DOJ press release, over $17 million was returned to hundreds of victims of Bitconnect, a scam that falsely promised returns through “trading bots.” According to the Department of Justice:
“The Bitconnect scheme is believed to have defrauded thousands of investors of more than $2 billion… The Justice Department and our law enforcement partners are proud to return these funds to the victims.”
Our client, who had invested $146,279 into Bitconnect, submitted a detailed petition to MLARS on his own, believing it would lead to restitution. The Government seized the cryptocurrency, citing 18 USC § 982 and 28 USC § 2461.
San Diego Defenders – Forfeiture Law Firm successfully recovered cryptocurrency by filing a claim.
Call San Diego Defenders – Forfeiture Law Firm Today to Recover Your Seized Cryptocurrency!
If your crypto was seized or lost in a DOJ forfeiture case (BTC-e or otherwise), don’t handle it alone.
San Diego Defenders – Forfeiture Law Firm has over 60 years of combined legal experience. We handle the paperwork, deadlines, and legal strategy from start to finish, and we take cases nationwide.
Call our office today at (619) 258-8888 for a free, confidential consultation. Don’t let a bad petition cost you your entire investment.
