Supreme Court Lawyer Tom Goldstein Detained Over Alleged Tax Evasion and Cryptocurrency Transfers
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Supreme Court attorney Tom Goldstein has been ordered into federal custody without bail following allegations of significant tax evasion and undisclosed cryptocurrency activities. Federal prosecutors assert that Goldstein, known for founding SCOTUSblog, failed to report substantial poker winnings and concealed cryptocurrency transactions.
Allegations of Undisclosed Cryptocurrency Transactions
Chief U.S. Magistrate Judge Timothy Sullivan stated that Goldstein posed a flight risk and could not be trusted to remain free after prosecutors said he transferred millions of dollars in cryptocurrency assets using accounts he concealed from the court.
According to court filings, Goldstein controlled two cryptocurrency wallets that were not disclosed to Pretrial Services after his indictment. Prosecutors allege that these wallets received over $8 million in recent days, with more than $6 million transferred out within a five-day span.
BREAKING: Supreme Court lawyer Tom Goldstein was arrested again today following his earlier release on tax evasion charges. Prosecutors allege he violated a court order not to transfer funds by receiving $8 million and sending $6 million in USDC/USDT. pic.twitter.com/VZINjwHMbb
— Mallard Beakman ₿⚡🥕 (@Bill_Fowler_) February 10, 2025
These actions purportedly violated a judicial order prohibiting fund transfers without prior approval. During a bail hearing, Goldstein denied ownership of these accounts, stating, “These are not my accounts. I didn’t engage in these transfers.”
In January, Goldstein was indicted on 22 counts, including tax evasion and filing false tax returns. The indictment alleges that from 2016 to 2021, he failed to report millions in poker winnings and used his law firm’s funds to settle personal gambling debts.
Notably, in 2018, Goldstein transported nearly $1 million in cash from Hong Kong to the U.S., identifying it as gambling winnings to authorities but later referring to it as a loan during communications with the Internal Revenue Service.
Further allegations indicate that in 2020 and 2021, Goldstein denied engaging in cryptocurrency trades on his tax filings despite conducting transactions exceeding $10 million. Prosecutors also claim he submitted false mortgage applications, omitting significant debts to secure loans for a $2.6 million residence in Washington, D.C.
Legal and Professional Implications
Goldstein has pleaded not guilty to the charges and has agreed to abstain from gambling and alcohol as part of his pretrial conditions. His legal team maintains his innocence, expressing confidence in his eventual exoneration.
This case underscores the legal complexities surrounding tax evasion, especially when intertwined with emerging financial technologies like cryptocurrency. The allegations against Goldstein highlight the importance of transparency and compliance in financial dealings, particularly for individuals in positions of public trust.
As the legal proceedings continue, the case serves as a reminder of the severe consequences associated with tax evasion and financial misconduct.
This case adds to the growing list of legal troubles surrounding cryptocurrency executives facing serious fraud allegations.
Do Kwon, co-founder of Terraform Labs, is currently facing nine felony charges in the U.S. following the collapse of the Terra ecosystem in 2022, which reportedly affected over one million victims globally.
His trial comes amid increasing scrutiny of crypto leaders, including Sam Bankman-Fried of FTX and Alex Mashinsky of Celsius, as authorities work to address widespread financial misconduct in the industry.
The Terra collapse not only devastated investors but also contributed to the downfall of other major crypto firms, amplifying calls for stricter regulations.
