Court Denies Bitcoin Recovery Claim Due to Delays and Conflicting Statements
- A federal appeals court rejected a Florida man’s attempt to recover over $354 million in Bitcoin after authorities destroyed a hard drive seized during his arrest.
- Michael Prime initially claimed he owned little cryptocurrency, later asserting possession of approximately 3,443 Bitcoin.
- The Eleventh Circuit upheld the lower court’s decision, citing Prime’s delay in filing the claim and conflicting statements as reasons for dismissal.
- Prime was sentenced in 2020 for access-device fraud, identity theft, and illegal firearm possession.
- Between approximately 2.3 million and 4 million BTC, representing up to18% of the total supply, are estimated to be permanently lost.
The court found that Michael Prime’s delays and inconsistent claims about his cryptocurrency holdings barred him from recovering alleged lost Bitcoin keys on a destroyed hard drive. The ruling emphasizes the importance of timely and consistent claims when dealing with asset recovery cases involving digital currencies.
Prime’s case highlights issues around asset recovery in cryptocurrency, where ownership is tied to cryptographic keys rather than physical devices like hard drives (Source)
