The DOJ has taken action to confiscate 119.65 bitcoin from Juan Carlos Reynoso in accordance with a seizure order that was obtained on January 31st, 2025.
Although Reynoso is a frequent proponent of multilevel marketing (MLM) Ponzi schemes, the specifics of the case connected to the seizure are yet unknown.
What we do know is as follows:
The DOJ served Reynoso’s lawyer with the seizure warrant on the same day it was issued after verifying that the lawyer would accept service. It happened at 1:24 p.m.
Reynoso was given 24 hours by the seizure order to transfer 119.65 bitcoin from a cryptocurrency wallet under his control to a DOJ wallet.
It is forbidden to prevent, impede, or interfere with the seizure of the subject assets by Juan Carlos Reynoso.
Within 24 hours of this seizure warrant being served, the SUBJECT ASSETS must be transferred.
In June 2024, “data obtained from electronic devices seized from Reynoso” in New Jersey led to the identification of Reynoso’s cryptocurrency wallet.
The 24-hour period for transfers came and passed. As a result, on February 1st, the DOJ followed up with Reynoso’s lawyer via email.
Reynoso’s lawyer emailed the DOJ back on February 3rd, citing a February 7th contempt motion filed by the DOJ. He stated that he had not given his client a copy of the seizure warrant right away after accepting service of it on Friday, January 31 because he was unaware that the case was “time-sensitive” or “that the warrant imposed any obligation on me or my client.”
According to Reynoso’s lawyer, on February 2nd, he opened the email that included the warrant. He said that he planned to submit a move to quash the subpoena, but he did not confirm service.
Reynoso’s lawyer and the DOJ don’t seem to be in contact with one other any more.
In the meanwhile, a DOJ investigation found that Reynoso started selling off the wallet holding the 119.65 bitcoin on January 31st.
All of the Subject Assets has been sold as of February 5, 2025.
As of February 5th, 119.65 bitcoin was worth around $11.7 million USD on the black market. I’m not certain, but this may be Reynoso’s earnings from the several multilevel marketing scams he has advertised over the years.
This leads us to the DOJ’s contempt motion from February 7th, in which the DOJ asked the Puerto Rico District Court to find Reynoso in contempt.
On February 18th, Reynoso’s lawyer submitted a request to revoke the arrest warrant.
Reynoso’s lawyer said in the motion that Reynoso’s Fifth Amendment protection against self-incrimination was violated by making him lose the bitcoin. Additionally, Reynoso’s lawyer contended that the subpoena was improperly served.
The court found Reynoso in contempt on March 3rd after ruling against him.
Less than two hours after defence counsel and [the] AUSA spoke over the phone … Reynoso transferred the assets in question to a different Bitcoin wallet.
On February 1, 2025, just after midnight, Reynoso once again moved the subject assets to a third Bitcoin wallet, this time with intuition more precise than the Oracle at Delphi.
The assets in question were subsequently transferred to a fourth and fifth Bitcoin wallet by him.
To comply with the seizure warrant, these frantic transfers took place within the allotted 24-hour period.
These transfers are, at most, the product of a fortunate incident—a coincidence that unintentionally made the seizure warrant useless.
However, it is very likely that Reynoso tried to thwart justice by avoiding a properly obtained court order given the short time between receiving notification of the warrant and moving the relevant assets.
The court determined that Reynoso’s lawyer’s claims about Fifth Amendment rights and service were “unavailing.”
By refusing to transfer the relevant assets, which takes very little time and effort, Reynoso is thwarting the seizure of 119.65 BTC.
His opposition to the transfer mandate is thus unconvincing. Law enforcement officials won’t learn anything more from the transfer of the 119.65 BTC.
The United States’ motion to hold Juan Carlos Reynoso in civil contempt is GRANTED for the reasons mentioned above.
Because of the seizure warrant, Reynoso is being held in civil court. The move to quash made by Reynoso is denied.
The court has fined Reynoso $10,000 each day for non-compliance with the seizure warrant in an effort to ensure compliance.
For each day after the publication of this Opinion and Order that Reynoso breaches the seizure warrant, he will be fined $10,000.00. Additional penalties and/or jail time might follow noncompliance.
Reynoso has already accrued $90,000 in penalties between March 4 and March 13.
I was unable to confirm the cause of the seizure. Other case numbers are provided by the court’s order and other files, but they are generic numbers unrelated to any particular case.
Nevertheless, I matched the figures in every instance that was made public. That was essentially a dead end since I didn’t recognise any of the names.
It seems that Reynoso is connected to a criminal case that is probably sealed based on what has been revealed. The contempt case docket’s related cases section reflects this;
Other court case: In Re: Seizure Warrant *SEALED* The case for which the seizure warrant was obtained would also be sealed, since I assume the sealed seizure warrant is related to the FBI seizure from June 2024, which is why I was unable to locate it.
iComTech, OmegaPro, TeaMiner, and/or Mexican cartel activities are potential suspects for illegal behaviour connected to Reynoso.
In October 2024, the proprietor of iComTech, an MLM cryptocurrency Ponzi, was given a ten-year jail term.
Despite not being formally accused, Reynoso served as CEO of iComTech.
In November 2022, OmegaPro, an MLM cryptocurrency Ponzi scheme, went down. Last year, a co-founder of OmegaPro was jailed in Turkey.
Reynoso served as the Latin American General Manager for OmegaPro.
In late 2023, the MLM cryptocurrency Ponzi TeaMiner was introduced. Reynoso and his son Juan Reynoso Jr. were the frontmen of the defunct fraud.
Reynoso was detained by Mexican police in March 2023 in relation to alleged cartel operations connected to Black Wall Street Capital.
