Resident of Puerto Rico Refuses Bitcoin Seizure Order, Risks Daily Fine of $10,000 – Decrypt

One man has been found in contempt of court for refusing to surrender nearly 120 Bitcoin, currently valued at $9.7 million, to the U.S. government. He faces a daily fine of $10,000 until the funds are handed over.

According to court documents, Juan Carlos Reynoso is accused of defying a judge’s order in Puerto Rico to transfer the $9.7 million worth of Bitcoin to a government address within 24 hours.

He allegedly distributed the funds to five different crypto wallets, with the transactions being traced on the blockchain.

Described as “frenzied,” these transfers were made shortly after Reynoso’s attorney accepted the warrant.

The court filing suggests that Reynoso may have attempted to obstruct justice by moving the assets following the notice of the warrant.

Juan Carlos Reynoso could face further penalties, including imprisonment, if he doesn’t comply with transferring the BTC to a government-owned wallet.

The reason for Reynoso’s Bitcoin forfeiture order remains unclear, with federal attorneys involved in the case yet to comment.

It’s noted in the filing that FBI agents seized one of Reynoso’s laptops in June 2024, which contained software for a Ledger hardware wallet.

Concerns about Bitcoin’s traceability on the blockchain were raised by privacy advocates, emphasizing the potential risks of lack of privacy in the cryptocurrency.

Privacy is bitcoin’s biggest weakness. Hopefully these seizure orders will open some eyes.

— Mallard Beakman ₿ (@Bill_Fowler_) March 10, 2025

Another individual pointed out the challenges of government confiscation of Bitcoin, highlighting the potential methods to secure and transport cryptocurrency assets.

The resolution of the standoff between Reynoso and the U.S. government remains uncertain, as his attempts to contest the warrant have been rejected.

With Donald Trump’s strategic reserve now relying on seized Bitcoin from criminals, the case is expected to spark further discussions and debates.

Edited by Stacy Elliott.