Bitclub Newsletter No. 199

Dear Clients,

There has been a new procedural development in the BitClub Network proceedings concerning assets that remain subject to seizure following the dismissal of the criminal case against Matthew Goettsche.

As previously reported, on July 28, 2026, the United States District Court for the District of New Jersey dismissed all charges against Matthew Goettsche with prejudice.

Only three days later, on July 31, 2026, Christopher Scanlon, a third party who is not a defendant in the criminal case, filed a Motion to Vacate Seizure Warrant, seeking the release of an account that remains subject to a seizure warrant connected with the proceedings.

A new filing submitted on August 27, 2026 now asks the Court to rule on that request.

What is Christopher Scanlon requesting?

According to the August 27 filing, Scanlon argues that, following the dismissal of the charges against Goettsche, there is no longer a sufficient basis for the continued restraint of his property.

His attorneys are therefore asking the Court to vacate the seizure warrant and order the return or release of his account.

Importantly, the Court has not yet granted this request.

The Motion to Vacate Seizure Warrant remains pending, and the August 27 filing represents Scanlon’s request for the Court to act on that motion.

Why was a new filing submitted on August 27?

According to Scanlon’s attorneys, the Government was served with the original motion on July 31, 2026.

They state that, under the applicable local procedural rules, the Government’s opposition was due by August 25, 2026.

The August 27 filing states that no opposition and no request for an extension had been filed by that deadline. Scanlon’s counsel therefore argues that the Government has forfeited its opportunity to oppose the motion and that the Court may treat the request as unopposed.

His attorneys are now asking the Court to grant the motion and release the account as soon as possible, including before the September 8, 2026 return date originally identified for the motion.

These are arguments presented by Scanlon’s counsel. The Court has not yet determined whether it accepts them.

Why is this development relevant to BitClub Network victims?

This filing is particularly relevant because it illustrates the distinction discussed in our previous update between seized assets, forfeiture and funds that may ultimately become available for victim compensation.

The fact that property was previously seized in connection with a criminal proceeding does not necessarily determine what will ultimately happen to that property.

Following the dismissal of the case against Goettsche, third parties may seek the release of property that remains restrained, and the Court may be required to determine whether there continues to be a legal basis for maintaining a particular seizure.

The Scanlon motion is one concrete example of that process now taking place.

At the same time, this filing should not be understood as meaning that all assets connected with the BitClub Network proceedings will now be released, nor does it determine what will happen to other seized or forfeited assets.

The present request concerns specific property claimed by a particular third party and must be considered on its own facts and legal basis.

What happens next?

The next important development will be the Court’s decision on Scanlon’s Motion to Vacate Seizure Warrant.

The August 27 filing states that the motion had been made returnable on September 8, 2026, although Scanlon is asking the Court to grant relief before that date.

Until the Court rules, the account remains the subject of a pending dispute and no conclusion should be drawn as to whether it will ultimately be released.

For BitClub Network victims, no action is currently required in connection with this filing.

We will continue to monitor the proceedings, particularly developments concerning seized and forfeited assets and any potential mechanism that could become relevant to victim recovery.

If the Court issues a decision on this motion, we will review its significance for the broader BitClub Network proceedings and inform you of any development relevant to your position.

Thank you for your continued trust.

Kind regards,

 Attorney Zoran Miljaković