A gap between a court forfeiture order and actual custody of digital assets has allowed cryptocurrency tied to a convicted scammer to move to unknown wallets, even as the individual remains in prison. According to the Department of Justice, a forfeiture order does not automatically transfer control of the underlying funds, leaving open the question of who retained the ability to authorize transactions. Because the DOJ did not take direct possession of the private keys, the assets could still be moved despite the legal ruling. The incident highlights a persistent challenge for law enforcement: securing crypto holdings requires technical control over wallets, not just legal authority. Critics argue the case exposes procedural weaknesses in how seized digital assets are handled, potentially allowing forfeited funds to slip away before authorities establish genuine custody over them.
— Sponsored —
Trade smarter on BYDFI
Get a bonus on your first deposit — from $50 at $100, up to $2,000 at $20k. 200x leverage, 600+ perpetuals, deep liquidity.