FBI’s Bitcoin “Wipe” Upheld as Standard Procedure

[cryptohog]

Michael Prime, convicted of identity theft and device fraud, sued the U.S. government after the FBI wiped his seized hard drive during standard evidence disposal procedures.

Prime alleged the action was illegal, as he said the drive contained thousands of Bitcoin. However, court documents show that in 2020, he reported owning only $200 to $1,500 in Bitcoin, contradicting his later claims.

Judges dismissed his explanation that the figure represented the market price per Bitcoin, calling it “preposterous,” since BTC traded above $10,000 at the time.

[Abdul Khan]

Government handling of seized crypto still feels like uncharted territory. 🧩

[alex10]

The “wipe” rule makes sense for security — but it also raises questions. ️