- A federal court in Puerto Rico has held President Juan Carlos Reynoso in contempt for refusing to surrender 119.65 BTC, valued at approximately $9.7 million
- Reynoso has been ordered to pay a daily fine of $10,000 until he complies with the court’s seizure warrant
- The court noted that Reynoso transferred the bitcoins to multiple wallets shortly after his attorney received the seizure warrant
A federal court in Puerto Rico has found the country’s President Juan Carlos Reynoso in contempt for failing to surrender 119.65 bitcoins, currently worth about $9.7 million. The court has imposed a daily fine of $10,000 until Reynoso complies with the seizure warrant, which was issued six weeks ago. Court documents reveal that Reynoso moved the bitcoins to several wallets soon after his attorney was notified of the warrant, seemingly in order to evade seizure.
Court Orders Seizure of Bitcoin
On January 31, 2025, Magistrate Judge Héctor Ramos-Vega issued a warrant authorizing the seizure of 119.65 bitcoins from a wallet associated with Reynoso. According to court documents, the haul came from unlawful activities, with statutes permitting the forfeiture of assets tied to criminal offenses.
The warrant required Reynoso to transfer the bitcoins to a government-controlled address within 24 hours and prohibited any actions that would obstruct the seizure. Reynoso’s defense attorney, Walter Reynoso, accepted service of the warrant on his client’s behalf, shortly after which, he allegedly transferred the coins to multiple wallets, actions described by the court as “frenzied” and indicative of an attempt to evade the seizure order.
Daily Fine Issued
In response to Reynoso’s non-compliance, the court held him in civil contempt and imposed a daily fine of $10,000 until he transfers the bitcoins to the specified government wallet, warning that continued refusal could result in additional fines or incarceration.
Reynoso moved to quash the seizure warrant, arguing that it violated Federal Rule of Criminal Procedure 41 and his Fifth Amendment rights, but the court rejected these arguments, stating that the warrant was clear and unambiguous, and that Reynoso had the ability to comply. The court emphasized that Reynoso’s actions appeared to obstruct justice by attempting to place the bitcoins beyond the government’s reach.
While the specific nature of Reynoso’s alleged criminal conduct isn’t detailed in the available filings, the government’s action suggests a belief that the bitcoins in question were obtained through illicit activities serious enough to warrant such a demand.
