Goldstein Denies Owning Crypto Wallets, Seeks Arrest Release

Summary:

• Attorney Tom Goldstein has been accused of financial misconduct via undisclosed cryptocurrency wallets.
• Prosecutors claim Goldstein moved funds through unreported wallets to evade detection. 
• Goldstein denies ownership of the wallets and has filed a motion to revoke his detention order.

Less than a month after facing federal charges for alleged tax evasion linked to high-stakes poker, attorney Tom Goldstein is now accused of additional financial misconduct. 

Investigators claim they uncovered undisclosed cryptocurrency wallets tied to millions in transactions over the past week. 

Goldstein, currently in federal custody following his Monday arrest, insists he has no connection to the wallets in question.

Indicted on 22 Counts

The embattled lawyer was indicted on January 16 in Maryland federal court on 22 counts, including allegations that he received $8 million in cryptocurrency and sent $6 million, just one day before asserting in court that he was $3.3 million in debt.

In an arrest warrant unsealed Monday, prosecutors emphasized the potential risk Goldstein posed. 

(Goldstein’s) receipt of over $8 million in cryptocurrency and transfer of over $6 million of cryptocurrency through undisclosed, unhosted wallets over the last five days—while attempting to shed the bond placed on his D.C. residence by telling the Court he is destitute—presents an urgent risk of flight

They further accused him of violating pretrial release conditions by failing to disclose the crypto wallets and making unauthorized transactions.

Magistrate Judge Timothy J. Sullivan found “clear and convincing evidence” of these violations, leading to Goldstein’s immediate arrest. 

Goldstein Files Emergency Motion to Revoke Arrest Order

On Tuesday, Goldstein filed an emergency motion to revoke the detention order, denying ownership of the wallets and claiming they belonged to third parties.

“The government has made a mistake“, Goldstein asserted in his motion filed with attorneys Jonathan I. Kravis and Stephany Reaves. Now, the SCOTUSblog publisher is representing himself.

According to Law360, the arrest warrant focuses on two cryptocurrency wallets allegedly connected to Goldstein. 

The first wallet, “935B“, reportedly processed transactions totaling over $149 million since November 2022. Prosecutors noted a $10 test transfer from this wallet, followed by an $8 million deposit and a $6 million withdrawal shortly after Goldstein’s indictment.

Investigators linked the wallet to Goldstein via messages with a West Coast-based concierge service.

I can definitely take $500k crypto, But I have to structure it as a purchase. Like I’m going to have a record of buying it.”

Prosecutors allege Goldstein shifted to “935B” after emptying his Coinbase account to evade detection. Investigators also flagged a second wallet, “54E3“, which received funds from “Professional Gambler-1“.

In light of the discovery, prosecutors deem the “risk of flight to an entirely new level“.

Goldstein remains held without bond. Prosecutors must respond to his motion by Wednesday at 7 p.m. ET.