US Court Finds FBI Innocent in Bitcoin Loss Case

A US court ruled that the FBI was not liable for destroying Michael Prime 's hard drive containing 3,400 BTC , highlighting the importance of timely asset declaration and contributing to the ~3.7 million BTC that are considered permanently lost.

Federal protocols proven in 3,400 Bitcoin case
The ruling clarifies the federal agency’s asset disposal process: because Michael Prime failed to clearly identify his ownership of the Bitcoin during the investigation and lacked evidence, the FBI erased the hard drive. The court then dismissed all claims because Prime asserted it was too late.

Analysts said the incident had little impact on the market and did not change the regulator's stance.

However, it highlights the importance of timely asset declaration in legal investigations, as late claims can lead to permanent loss of ownership.

The ruling emphasizes the role of monitoring and transparency of personal assets; recommends proactive asset management and enhanced security to avoid risks of loss and legal disputes.