The U.S. Court of Appeals dismisses Bitcoin claim; FBI destroyed hard drive case is granted court immunity

A recent development has occurred in a lawsuit involving the FBI's destruction of encrypted assets. The U.S. Court of Appeals issued a ruling stating that the Federal Bureau of Investigation (FBI) is not legally liable for destroying a hard drive containing over 3,400 Bitcoins.

**Case Background and Plaintiff's Claims**

Plaintiff Michael Prime was convicted of identity theft and later claimed publicly that his storage device had been confiscated by the FBI, and that the hard drive stored a large amount of Bitcoin assets, which was ultimately destroyed. Prime filed a lawsuit against the FBI, seeking a court ruling and accountability.

**Key Logic of the Court's Decision**

In the court's ruling, the judge pointed out a significant factual inconsistency: Prime had consistently denied holding any substantial Bitcoin assets during the lengthy judicial process. It was only after he was released from prison and attempted to recover lost assets that Bitcoin first appeared in his claims. Notably, Bitcoin was never listed on the official asset inventory until he suddenly claimed to own a large amount of cryptocurrency.

The judge concluded that this contradictory statement severely undermined the plaintiff's legal basis, leading to the court's decision that the FBI is not responsible for the destruction of the hard drive. This ruling indicates that courts, when examining similar cases, will focus on whether the plaintiff's statements have been consistent over time.