Juan Carlos Reynoso, a Puerto Rico resident, is facing contempt of court charges for refusing to surrender nearly 120 Bitcoin, valued at approximately $9.7 million, to the U.S. government. A judge has threatened him with daily fines of $10,000 until the funds are transferred to a government-controlled address. After being notified of a court order, Reynoso allegedly moved the Bitcoin to five separate crypto wallets in what the court described as 'frenzied' transactions. His actions occurred shortly after his attorney accepted the warrant, indicating an attempt to obstruct justice. The exact reason for the Bitcoin seizure remains unclear, as the court filing only notes that FBI agents seized Reynoso's laptop in June 2024, which contained software for a Ledger hardware wallet. Privacy advocates have raised concerns over the traceability of Bitcoin, stressing its weaknesses in terms of privacy. The outcome of this standoff between Reynoso and the U.S. government remains uncertain, especially given the potential consequences he faces, including further fines or possible incarceration.

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