In a case that sounds almost too surreal for a courtroom, a former inmate has just lost his bid to recover what he claims was a digital fortune — a fortune allegedly wiped out when the U.S. government destroyed an old hard drive. It’s a modern parable of timing, technology, and the volatile world of cryptocurrency, and it raises a question many legal experts are now asking: How do you prove you once owned millions in Bitcoin when the only evidence is gone for good?
A Claim That Arrived Four Years Too Late
The story revolves around Michael Prime, who was sentenced in 2019 for identity theft and counterfeiting. When he entered prison, officials requested an inventory of his belongings — a standard procedure. His list was modest: two boats, a couple of vehicles, and what he described as “a bit of Bitcoin,” estimating it at somewhere between $200 and $1,500.
Nothing in his declaration hinted at a digital jackpot.
And so, when authorities later disposed of several items, including an orange external hard drive, nothing seemed out of the ordinary.
Fast forward four years.
Upon his release, Prime suddenly claimed that same orange hard drive had actually contained 3,443 Bitcoin, worth about $345 million at today’s valuation — a staggering jump from the 2019 price of around $10,000 per Bitcoin to more than $100,000 in late 2025.
The Court Isn’t Convinced
Prime filed an appeal demanding that the government reimburse him for the alleged loss. But the U.S. Court of Appeals rejected his claim for several reasons, citing a lack of consistency and evidence.
According to the court’s decision, Prime never told authorities during intake or release that his hard drive held anything of significant value. There was no mention of Bitcoin wallets, private keys, or digital assets — the basics any crypto holder knows are essential.
In its ruling, the court noted it had “no difficulty” concluding that the government would never have destroyed the drive if there had been any reason to believe it held a multimillion-dollar trove of cryptocurrency. The judges even expressed “serious doubt” as to whether the Bitcoin ever existed.
A Coincidence of Timing — or a Convenient Revelation?
The explosive rise of Bitcoin’s value over the last few years may explain Prime’s sudden recollection. Cases of individuals “rediscovering” lost digital riches are not unheard of — crypto’s meteoric climbs have a way of reviving forgotten wallets, dubious memories, and improbable stories.
But without the hard drive, and without prior documentation, there was no way to establish ownership. As legal analysts frequently point out, cryptocurrency law hinges on one uncompromising principle: if you lose the private key, you lose the asset.
In this case, Prime wasn’t just missing the key — he was missing the entire device.
The Final Verdict
In the end, the appeal was dismissed. The destroyed hard drive cannot be recovered, the claim cannot be verified, and the court has firmly shut the door on any reimbursement.
For Prime, the alleged $345 million fortune is gone forever — if it ever existed at all.
For everyone else, this case is a stark reminder of the fragile marriage between the justice system and digital assets, where ownership can be worth hundreds of millions… yet hinge on a single physical object tossed out years ago.
If you’d like, I can also create a shorter breaking-news version of this story or a sidebar explaining how courts typically handle lost Bitcoin claims.
