US court blocks victims from 127,000 seized Bitcoin, and petition rules are blamed
Summary
A federal judge dismissed nine fraud victims’ claims to challenge the forfeiture of about 127,271 Bitcoin, finding they did not plausibly connect their losses to the specific seized wallets and therefore lacked standing. The ruling treats them, at most, as unsecured creditors rather than owners of the Bitcoin. If the government wins the forfeiture case, eligible victims may separately seek discretionary DOJ remission by documenting qualifying losses and meeting other conditions. Any payout could be partial and is not guaranteed.
