Federal Court Ruling on Bitcoin Compensation Claim
A significant blow was dealt to one of the largest bitcoin compensation claims in history by a federal appeals court that ruled against a request for $364 million made by Michael Prime, a man with a criminal record. The U.S. Eleventh Circuit Court of Appeals determined that Prime’s claim against the federal government was submitted too late and lacked sufficient evidence to support his assertions.
Details of the Court’s Decision
In its recent decision issued on November 4, the court upheld a previous ruling from a lower court in Florida that deemed Prime’s claim inadmissible. This ruling stemmed from allegations that federal agents had destroyed a hard drive housing the private keys to thousands of bitcoins connected to Prime. However, he was previously convicted in 2019 for various offenses, including counterfeiting and identity theft, which fundamentally undermined his credibility in this legal battle.
Legal Concepts and Findings
The court’s findings emphasized the significant delay in Prime’s pursuit of his claim, referencing the legal concept of laches, which argues that one may lose their right to a claim if they wait too long to pursue it. The appellate judges pointed out inconsistencies in Prime’s statements regarding his ownership of the bitcoins and concluded that granting him recovery would be unjust, considering how he had delayed action and put the government at a disadvantage.
Evidence of Criminal Activity
Additionally, evidence tied to Prime’s criminal activity revealed a vast fraud operation, including fraudulent credit cards and forged IDs, adding layers to his contested legitimacy. Four years after his conviction, Prime sought the return of an external hard drive, claiming it contained crucial cryptographic keys to approximately 3,443 bitcoins—essentially worth over $345 million at the time of demand. However, the court stated that by the time he attempted to reclaim the drive, it had already been disposed of as per standard procedures.
Market Implications
As of the latest market update, bitcoin’s trading value stands at $105,749, solidifying the massive financial implications of this case for Prime, who now faces a definitive loss in his quest for the cryptocurrency.
