Malaysian Court Affirms Bitcoin Ownership Tracing, Orders Restitution in Bitkingdom Scam Case

A Malaysian High Court has ruled that wallet transfers and mixing do not erase Bitcoin ownership claims, ordering proportional restitution in the Bitkingdom scam case. Under the ruling by Justice Mohd Arief Emran Arifin, approximately 176.18 Bitcoin will be returned to nine verified victims who originally deposited 362.04 BTC. The Malaysian government will retain the remaining 321.64 BTC, valued at about $26.2 million, out of 497.82 BTC seized. Restitution was distributed proportionally because 207 victims reported losses totaling nearly 1,023 BTC, which exceeded the seized assets.