Felony Justice
SCOTUSblog founder Goldstein had connection to cryptocurrency wallet hosting $100M in transfers, US alleges
Federal prosecutors cited alleged “ongoing legal conduct” by indicted SCOTUSblog co-founder Tom Goldstein in a courtroom submitting urging a federal choose to hold in place an order requiring monitoring of his digital units. (Photograph by Alex Brandon/The Related Press)
Federal prosecutors cited alleged “ongoing legal conduct” by indicted SCOTUSblog co-founder Tom Goldstein in a courtroom submitting urging a federal choose to hold in place an order requiring monitoring of the previous U.S. Supreme Courtroom litigator’s digital units.
In a March 6 court filing, prosecutors stated Goldstein has been utilizing unhosted cryptocurrency wallets “for his monetary shell sport,” and prosecutors have proof about two of them that weren’t beforehand disclosed to the courtroom or pretrial providers—together with one which has hosted $100 million in cryptocurrency transfers.
He additionally allegedly failed to file private tax returns in 2022 and 2023 and supplied funds to a regulation agency supervisor who was a possible witness.
Law360, Newsweek and PokerNews (through How Appealing) have protection.
Goldstein was indicted on tax evasion costs in January for allegedly hiding hundreds of thousands of {dollars} in revenue and cryptocurrency transactions on tax returns. He was additionally accused of utilizing his boutique agency to assist cowl his money owed and of creating false statements to mortgage lenders.
The indictment was for alleged tax evasion between 2016 and 2022. However Goldstein additionally failed to report playing winnings of greater than $12 million in 2022 and greater than $10 million in 2023, the federal government stated.
PokerNews highlighted a authorities spreadsheet exhibiting funds made by a single participant to Goldstein over a two-year interval starting in Could 2022. The intent was to present Goldstein’s 2023 playing winnings, the article says. The funds mirror that the participant had internet losses of $51.4 million.
The usage of cryptocurrency reinforces that Goldstein is a major flight threat, and his failure to disclose it reveals that the federal government shouldn’t belief him, the courtroom submitting stated.
“In impact, defendant now asks the courtroom to simply belief him,” in accordance to the submitting. “However the indictment alleges defendant lied to the IRS, his accountants, his buyers and a number of mortgage lenders—all of whom initially trusted him. … The courtroom shouldn’t make the identical mistake.”
The federal government alleged that Goldstein had connections to a beforehand undisclosed cryptocurrency wallet that has obtained and despatched $100 million in cryptocurrency since its creation in 2022. Even when Goldstein doesn’t personal the wallet, the federal government stated, his use of it reveals his connection to folks “who’ve managed tens of hundreds of thousands of {dollars} in cryptocurrency” and could also be dwelling overseas.
He additionally allegedly used one other beforehand undisclosed wallet in which an expert gambler transferred greater than $242,000 to pay Goldstein for a poker loss. There isn’t a indication that the cash was meant for anybody else, the federal government stated.
Prosecutors additionally alleged that Goldstein supplied a departing agency supervisor a $10,000 bonus, pupil mortgage funds and cryptocurrency. The Goldstein & Russell supervisor was a possible witness, and the funds appeared to be an try to affect the individual, prosecutors stated.
Goldstein was arrested in February after federal prosecutors alleged that Goldstein violated the phrases of his launch by failing to disclose two unhosted cryptocurrency wallets by way of which he transferred hundreds of thousands of {dollars} in the foreign money. The federal government’s new submitting cited his use of these wallets, in addition to a number of others.
A federal Justice of the Peace choose ordered Goldstein’s release Feb. 13 after figuring out that Goldstein had plausibly denied that he owned the 2 wallets, which aren’t hosted at any exchanges.
Goldstein has conceded that he beforehand had entry to the newly disclosed cryptocurrency wallets however stated he doesn’t at present management them, prosecutors stated.
“These statements elevate extra questions than solutions,” prosecutors stated. Goldstein “has not defined how he misplaced management of these wallets, who now controls them, why they nonetheless comprise giant sums of cryptocurrency or what—other than his personal volition—prevents him from regaining management of them. Nor does his submitting supply any proof to corroborate his claims.”
In a March 10 filing, Goldstein stated his alleged failure to disclose cryptocurrency to the IRS consisted of failing to examine a field on his tax return. As well as, “the federal government’s makes an attempt to make Mr. Goldstein’s prior use of cryptocurrency seem nefarious are extremely deceptive,” Goldstein’s submitting stated.
He additionally stated the extra cryptocurrency wallets cited in the prosecution’s authorized submitting had been identified to the federal government at Goldstein’s preliminary courtroom look. And the wallets have been inactive since December 2022 and since 2024. There isn’t a allegation that Goldstein used the wallets whereas on pretrial launch, Goldstein stated.
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