According to a press release by the district court of Puerto Rico, on January 31, 2025, Magistrate Judge Héctor Ramos-Vega signed the seizure warrant that forced Reynoso to transfer assets to a government-controlled wallet within 24 hours.

However, almost immediately after Reynoso's attorney accepted the warrant, Reynoso moved the Bitcoin to many different wallets.

Walter Reynoso, who represents Reynoso, alleged insufficient notice from the government, arguing that Reynoso had not opened the email with the seizure warrant right away because he had been involved with family functions.

Reynoso also argued that the warrant violated the Federal Rule of Criminal Procedure 41 and his Fifth Amendment right against self-incrimination. It dismissed these claims and held that Reynoso's arguments were not legally persuasive and were a form of obstruction.

Judge Francisco A. Besosa declined to quash the seizure order against Reynoso, holding him in civil contempt.

Citing precedent, the court held that its authority to require compliance with seizure warrants was particularly warranted where "ownership and control of the seized assets was in any event a foregone conclusion." Reynoso's actions were blatant acts of defiance, ruling out any argument from innocence or unaided misunderstanding.

Consequently, Reynoso must pay the 119.65 BTC—valued at a little over $12 million—or incur daily fines of $10,000 until he complies.

Failure to comply could result in further penalties, including imprisonment. This case upholds the government's ability and willingness to enforce cryptocurrency seizures on favorable terms. It reinforces legal precedents that claim virtual assets are subject to forfeiture orders on the same basis as other forms of property.

On March 7, President Donald Trump signed an executive order to use the forfeited Bitcoins from Silk Road and likely other cases, such as Juan Carlos Reynoso's, to build a Bitcoin reserve for the United States.