The battle over cryptocurrency recovery in the BTCe forfeiture case has escalated after a new filing from MtGox trustee Nobuaki Kobayashi. On August 20, 2025, Kobayashi submitted a verified claim in the U.S. District Court for the District of Columbia, asserting that Bitcoin seized from BTCe by federal authorities includes coins stolen from MtGox prior to its infamous collapse.
According to SDD / Forfeiture Law Firm attorney Dan Smith, who represents four BTCe account holders in the civil forfeiture case filed June 30, 2025, the trustee’s claim could reshape the legal landscape.
“The MtGox Trustee just alleged that BTCe’s Alexander Vinnik stole about 300,000 traceable bitcoin from MtGox, which directly caused its insolvency in what remains the largest bitcoin scandal in history,” Smith explained.
The BTCe exchange was shut down and its servers seized by U.S. law enforcement in July 2017, leaving thousands of users unable to access their crypto funds. Many of these account holders have been waiting years for a chance to recover their assets. Smith notes that while MtGox faces the difficult task of tracing hundreds of thousands of bitcoin through complex transfers, his clients’ claims are simpler because their transactions were smaller and recorded directly on BTCe’s seized servers.
For early bitcoin investors, the stakes are enormous. “Many of my clients bought bitcoin when it was around $100. Just imagine what they’re thinking now as they wait to see if recovery is possible,” Smith said.
The U.S. government published notice of the forfeiture case on July 4, 2025, giving claimants only 60 days to file. With billions of dollars in cryptocurrency potentially at stake, legal experts expect the BTCe civil forfeiture case to become one of the most closely watched crypto recovery proceedings ever.
Smith believes the outcome could have lasting implications not only for MtGox creditors, but also for the broader understanding of how virtual assets are recovered in federal court. Because of the amount of Bitcoin seized in the BTCe case, the MtGox claim could wipe innocent owners out.
“This case may help show the world that while cryptocurrency presents challenges, it also holds life-changing potential for future generations and the implications cannot be overstated,” Smith added.
If you have had your crypto seized and would like to speak to one of our attorneys about your options for recovery, call 619-258-8888 or complete our online case evaluation form.
