Judge Orders Laptop and Bitcoin Wallet Returned to Killer's Family

A Nova Scotia Supreme Court judge has directed that a personal computer housing a digital currency wallet be handed back to relatives of William Sandeson, an inmate currently serving a life sentence for a 2015 homicide. Justice John Bodurtha delivered the ruling in Halifax following a legal request submitted earlier in the year by Sandeson to retrieve belongings confiscated by law enforcement following his initial arrest nearly a decade ago.

The magistrate determined that government attorneys failed to demonstrate that the cryptocurrency assets were connected to the fatal drug deal, proceeds derived from illicit activities, or otherwise tainted by illegal conduct. The court noted that any potential involvement of the digital funds in the transaction remained entirely speculative. However, the bench ruled that a modest amount of physical currency discovered within the residence constituted offense-related property and would remain confiscated.

Legal representatives for the victim's relatives in an unrelated civil wrongful death proceeding previously suggested the digital assets could hold a significantly higher valuation today compared to their worth at the time of the seizure. The inmate had originally estimated the value of the digital tokens at a much lower level years prior. The official court proceedings did not specify the exact volume of cryptocurrency contained within the digital storage device.

A Canadian judge ruled that prosecutors failed to prove a killer's cryptocurrency was linked to his crime.

The underlying criminal case involved a scheduled meeting at the offender's residence regarding a cannabis transaction. Investigators established that the perpetrator shot his university acquaintance, retained the money and merchandise, and subsequently disposed of the victim's remains in a tidal river. Following multiple legal proceedings and appeals, a jury ultimately convicted the perpetrator of second-degree murder, resulting in an automatic life imprisonment term with parole eligibility set for future years.

Why it matters

This judicial decision establishes limits on the state's ability to retain seized assets without definitive proof connecting them directly to criminal activity. While certain cash funds were deemed connected to the offense and forfeited, the release of the digital wallet highlights the strict evidentiary requirements needed for asset seizure in criminal prosecutions.