Attorney Ordered to Pay $5.2M for Releasing Bitcoin Funds From Escrow

Aug 25, 2020 Crypto

Another major news is coming from the Cryptocurrency world. As per a new news story, a federal judge from New York has ruled that a New York-based attorney was responsible for paying a crypto investment firm. As per the claims made and the ruling given by the judge, the attorney released escrow account funds and set aside $5 million for investing in bitcoins. 

As per the judge, an Attorney named Aaron Etra was on the hook of paying $4.6 Million to the San Francisco-based firm called Master Fund. As per the judgment, the attorney has to pay $5.255 Million (including interest).

The ruling came after the attorney failed to show for an April court date. His absence was one of the main reasons the judge ruled in the crypto firm’s favor. As per Judge Nathan, who ruled the judgment, the attorney has only himself to blame. As per the judgment, the respondent failed to appear on the present evidence despite having the notice of proof.

What is the case?

This bitcoin case started when Benthos reached out to attorney Etra and asked him to be an escrow agent for the firm’s bitcoin purchase. Both of them signed an agreement, which was a complete bitcoin agreement. The agreement they signed was with the Valkyrie group, which had the task of finding out third parties interested in selling the crypto holdings.

Initially, Benthos wanted to invest $5 million in purchasing Bitcoins. The amount was more than enough to buy 10,000 bitcoin tokens at once. And then, the amount was to be deposited in the escrow account.

But, Attorney Etra without getting the approval of Benthos transferred $4.6 billion of the total bitcoin fund out of the escrow fund over two transactions. Thus, in this transaction, not a single bitcoin was sent to the firm.

The Judgement:

After the court proceedings started, the court ordered attorney Etra to produce complete information and documentation about the missing fund. Attorney produced documents and returned $400,000, and he has also shown his communication with the firm, and the contempt of court charges were denied in the judgment. 

The judgment has asked the attorney to pay a total amount of $5.2 million, including interests. This can be seen as a hidden blessing to Etra as he was liable to pay more than $108 million as per the current value of bitcoin in fiat money.