Malaysia to Keep 321.64 Bitcoin Worth $26.2 Million After Bitkingdom Ruling
Malaysia’s government will retain approximately 321.64 Bitcoin (BTC), worth about $26.2 million, following a Kuala Lumpur High Court ruling. The decision, detailed in an October 12, 2026 judgment, concerns cryptocurrency seized from the Bitkingdom investment scam. The court also ordered authorities to return approximately 176.18 BTC to nine victims. Officials had recovered 497.82 BTC from two cryptocurrency wallets linked to the fraudulent operation.
Bitkingdom operated between 2015 and 2016, attracting investors with promises of approximately 1% daily returns. The nine claimants collectively deposited 362.04 BTC into the scheme. However, investigators recorded 207 police reports involving total losses of approximately 1,023 BTC. Because recovered assets could not cover all reported losses, the court approved proportional compensation rather than full repayment.
The judge determined that transferring stolen cryptocurrency through multiple wallets did not eliminate victims’ ownership rights. However, the remaining 321.64 BTC will be forfeited to the Malaysian government under anti-money laundering legislation. The ruling follows a December 2025 decision classifying the seized Bitcoin as proceeds of unlawful activity. At an estimated Bitcoin price of $81,400, the government’s retained holdings represent a substantial cryptocurrency asset.
Why it matters
The ruling highlights how cryptocurrency ownership rights can survive fraudulent transfers while recovered assets remain insufficient for full compensation. It also demonstrates how governments can acquire substantial Bitcoin holdings through asset forfeiture.
