Malaysia Court Says Wallet Transfers Do Not Erase Bitcoin Ownership Claims

A Malaysian High Court ruled that Bitcoin moved through intermediary wallets can still be subject to ownership claims, addressing victims’ efforts to recover assets seized in the Bitkingdom scheme. The Oct. 12 ruling concerned 497.82 Bitcoin (BTC) seized in connection with the scheme and claims by nine investors. The court ordered a proportional return to the claimants. They had deposited a combined 362.04 BTC into Bitkingdom between 2015 and 2016. Justice Mohd Arief Emran Arifin rejected the prosecution’s argument that transfers between wallets and the mixing of digital assets prevented the claimants from establishing an interest in the seized Bitcoin.