A district court in Puerto Rico found Juan Carlos Reynoso guilty of contempt of court after he refused to voluntarily transfer seized bitcoins to a government-controlled wallet.

According to case materials, in June 2024, during an ongoing investigation, FBI agents discovered a laptop with software for a Ledger hardware wallet installed.

On January 31, 2025, the court issued an order to seize 119.65 BTC (~$12.6 million at the time). However, within 24 hours, Reynoso transferred the funds to five addresses under his control.

He later attempted to argue in court that the seizure order violated the Fifth Amendment regarding unlawful government confiscation of property. The court dismissed the motion, ruling that the asset seizure was lawful. Furthermore, the bitcoin transfer provided direct evidence of his access to the funds and his ability to comply with the order.

Reynoso was taken into custody in court. Until the 119.65 BTC are transferred to the government’s wallet, he will be fined $10,000 per day for each day of non-compliance. Failure to comply may result in additional penalties, including imprisonment.

Previously, Cryptol reported that US authorities would return $8.2 million seized from criminals who used a “random number” scam.