Federal Judge Blocks Claims to 127K Stolen Bitcoin Held by US Government

A federal judge has rejected claims to approximately 127,271 Bitcoin held in government custody. The decision removes a key obstacle for U.S. authorities pursuing one of the largest cryptocurrency forfeitures on record.

The court's ruling is based on procedural deficiencies in the petitions rather than on the merits of the ownership arguments themselves. This means that the challengers lose standing to contest ownership of the assets at this stage.

The U.S. Department of Justice has framed the bitcoin as allegedly stolen funds subject to federal recovery in its civil forfeiture filing. The government has been increasingly active in forfeiture proceedings involving large cryptocurrency holdings tied to illicit activity, making procedural compliance particularly consequential for any party seeking to assert an interest.