On September 22, 2021, a U.S. District Judge in San Antonio, Texas, issued a summary judgment regarding the citizen confiscation of 147 bitcoins worth 6. 6.3 million held in a Treasure Hardware Wallet. According to information filed in court, the crypto assets stemmed from a target gift card fraud incident that began in 2016.
Gift card fraud money has turned into bitcoin
The Western District of Texas, San Antonio Division Court is facing a lawsuit involving gift card fraud and bitcoin. According to the information filed in the court, an American named James Allen Clark worked at the retail chain target as the leader of the executive team of asset protection in San Antonio, Texas. Allegedly, Clark accesses Target’s gift card database using his Target Certificate and is reported to have received an active gift card recently. After Clark identified the new active card, he took a screenshot of the gift card’s account information.
After filing, it was claimed that Clark shared gift card information with co-conspirators who used the accounts to buy iTunes cards and “Clean” target cards. U.S. prosecutors then claimed that Clark was paid in bitcoin and that he first used a mycelium wallet. Bitcoins are then transferred to a treasure hardware wallet, referred to briefly as “Key Phob One”.
“Clark had a treasure wallet (Key Phob One) with him at the time of the arrest,” the filing note said. “After his arrest, Clark was detained at the Geo Detention Center in San Antonio, Texas. On September 21, 2017, Clark called his wife from Geo. At the beginning of each call emanating from Geo, a recorded message suggested that the phone call was recorded. During the call, Clark asked his wife if she had received a whip from Secret Service agents and told her she could keep it or send a phob to her friend Matt Baker (‘Baker’) in Portland.
The verdict adds:
Clark then told his wife the passcode to Key Phoebe One and said he could also call Baker a passcode. Clark’s wife then sent Foyer to Baker. The recording of Clark’s calls from Geo was handed over to the agents involved in the case.
Court violates Clark’s Fourth Amendment rights, WhatsApp message reveals
In the court ruling, Clark claimed that his Fourth Amendment rights were violated when he accessed the treasure from Geo through a phone call system with his wife. “Since the plaintiffs acknowledge that the key fob was not illegally seized and since there is no reasonable expectation of privacy in Clark’s personal calls from Geo, the court rejected that offer because it seeks to suppress the key fob one search,” the Texas District Judge’s statement said.
Additionally, other “key fobs” were mentioned because the government confiscated 187.5 Ethereum (ETH) and 76 bitcoin cash (BCH) from “Key Phob Three” and confiscated $ 120,000 cashier’s checks. “After the evidence presented, the court finds that the government has fulfilled its obligation by presenting circumstantial evidence, that 147.18 Bitcoin Clark’s conspiracy generates recoverable income,” the order notes.
The court filing further noted that Clark and his co-conspirators made most of their business contacts through WhatsApp’s instant messenger. In a WhatsApp conversation with a co-conspirator on October 19, 2016, Clark complained: “I’m really excited we’re going to make a pretty thick bitcoin wallet,” and “we’ve got an amazing scheme.” Twelve days later on Halloween, Clark reported: “We’re going to do our ass work but man we’ll do some mint [bitcoin]. ”
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