Bitclub Newsletter No. 201

Dear Clients,

In our recent updates, we have been following Christopher Scanlon’s pending Motion to Vacate Seizure Warrant and the questions surrounding property that remains restrained in connection with the BitClub Network proceedings.

At present, there is no new Court decision or other substantive development concerning Scanlon’s request that changes the position described in our previous update.

Rather than repeat the same status, this week we would like to address a broader question that has become particularly relevant following the dismissal of the criminal charges against Matthew Goettsche:

What happens to property seized during a criminal case when the underlying criminal charges are dismissed?

Dismissal of criminal charges does not necessarily resolve the status of seized property

It may appear logical that, once criminal charges are dismissed, property seized in connection with those charges should automatically be released.

The legal position can, however, be more complicated.

The dismissal of a criminal case and the legal status of property seized during that case are related issues, but they are not necessarily resolved at the same time or through the same procedure.

Questions may remain concerning the legal basis for continued restraint, competing claims to the property, ownership of particular assets, or whether another legal process affects the property.

This is one of the reasons why a separate application to the Court may be necessary even after the underlying criminal charges have been dismissed.

Why does the Scanlon motion illustrate this distinction?

Scanlon’s pending motion is important precisely because it raises this issue.

Following the dismissal of the charges against Goettsche, Scanlon is asking the Court to vacate the seizure warrant as it applies to specific property that he claims should no longer remain restrained.

However, the dismissal itself did not automatically produce a Court order releasing that property.

The Court must still address the request before it and determine whether the legal basis exists for the relief being sought.

Until that happens, the fact that the underlying criminal charges were dismissed should not be treated as equivalent to a finding that the particular property must be released.

Why does this matter beyond Scanlon’s individual request?

For BitClub Network victims, the broader issue is the status of property that was identified or restrained during the criminal proceedings.

Not every asset connected with the proceedings will necessarily be in the same legal position. Different property may have been seized on different grounds, may be claimed by different persons, or may be affected by different procedural circumstances.

For this reason, even a future decision granting or denying Scanlon’s motion would need to be examined carefully before drawing conclusions about other assets.

Nevertheless, the Court’s treatment of disputes concerning previously seized property may help clarify how particular assets are dealt with following the dismissal of the criminal charges.

What is the current position for BitClub Network victims?

At present, there is no new verified development requiring action from our clients.

The Scanlon motion remains relevant because it concerns the continuing restraint of property following the dismissal of the underlying criminal charges. We will therefore continue to monitor the proceedings for a Court order or any further filing.

If a decision is issued, the important question will not simply be whether Scanlon succeeds or fails. We will also examine the Court’s reasoning, the specific property affected by the decision and whether anything in that reasoning may have broader relevance to other assets connected with the BitClub Network proceedings.

Until then, we consider it important not to draw conclusions from the passage of time or from the dismissal of the criminal charges alone.

We will keep you informed of any verified development that may materially affect the position of BitClub Network victims.

Thank you for your continued trust.

Kind regards,

Attorney Zoran Miljaković