On September 25, Judge Rachel P. Kovner of the Eastern District of New York rejected claims by nine alleged fraud victims seeking to contest the forfeiture of approximately 127,271 Bitcoin. The nine claimants failed to establish a plausible connection between their lost funds and the specific seized wallets, leaving them without Article III standing to contest the forfeiture. The Bitcoin is linked to fraud and money laundering allegations involving Prince Holding Group, a Cambodian conglomerate, and its chairman Chen Zhi. The judge indicated that these victims may still petition for recovery through victim remission if the government succeeds in the forfeiture, under 28 CFR 9.8 rules. This process remains discretionary and capped at the victim’s share of net forfeiture proceeds, with no guarantee of full repayment.
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