US Judge Orders Forfeiture of One Crypto Wallet in North Korean IT Worker Case

A US federal judge has ruled that one cryptocurrency wallet in the North Korean IT worker case can be forfeited, but denied the forfeiture of seven other tranches sought by the government. The reason for the denial was not due to a lack of evidence, but rather because the government failed to meet the particularity requirement for publishing public notice of the remaining property.

The granted portion covers funds seized from the unhosted address 0x81c4d8816b29147c542dDE87485608204690Acf2, taken from Circle Internet Financial on September 30, 2022. The court found that this theory was sufficient to cover property traceable to violations of the International Emergency Economic Powers Act.

The government published its public notice of forfeiture listing a single address, but failed to describe the remaining property with reasonable particularity as required by Supplemental Rule G. This rule requires both publication and direct notice to potential claimants, which was only satisfied for 0x81c4.