Fishbeck Claimants Fight for Bitcoin Seized by US Government
On Friday, February 13, 2026, the Fishbeck Claimants filed an answer to the U.S. government’s Verified Complaint in Rem, addressing a civil action concerning approximately 127,271 Bitcoin. The case is being heard in the Eastern District of New York.
The Fishbeck Claimants, in their response, admitted to allegations in Paragraph 1, while denying the United States’ claim of superior right, title, or interest in the cryptocurrency. They contend that Paragraph 2 contains legal conclusions that require no response. However, to the extent a response is required, they deny that the referenced authorities in Paragraph 2 grant the United States any right, title, or interest in the Bitcoin.
Regarding jurisdiction and venue, the Fishbeck Claimants acknowledge the court’s jurisdiction pursuant to 28 U.S.C. §§ 1345 and 1355. They admit that the Defendant Cryptocurrency is the 127,271 Bitcoin once stored at the addresses in Attachment A. They state that the Defendant Cryptocurrency is owned by the Iran and China Investment Development Group, also known as LuBian, an Iranian joint-stock company that partnered with the Iranian government to construct a Bitcoin mine in Rafsanjan, Iran, allegedly to evade U.S. sanctions.
The Claimants generally refrain from responding to paragraphs characterizing statutes, deeming them self-explanatory. However, concerning forfeiture statutes, they deny that the authorities referenced in Paragraphs 13 and 14 confer on the United States any superior right, title, or interest in the Defendant Cryptocurrency.
The Fishbeck Claimants acknowledge that LuBian was the cryptocurrency mining pool and front for the Iran-China Group. They admit that the Iran-China Group maintained a Bitcoin mining facility in Iran. However, they claim insufficient knowledge to admit or deny the remaining allegations in Paragraph 16, including subsections (a) through (t) and (v) through (y).
The Claimants admit the allegations in subsections (d) through (l) of Paragraph 17, pertaining to relevant terms and definitions. They lack sufficient knowledge to admit or deny other allegations in Paragraph 17, including subsections (a) through (c). They also claim insufficient knowledge to admit or deny the allegations in Paragraphs 18, 20-39, 43, 46, 50-57.
The Fishbeck Claimants admit that the Iran-China Group, operating as LuBian, ran a Bitcoin mining facility that produced clean bitcoin dissociated from criminal proceeds. They also admit that it was the sixth largest Bitcoin mining operation for a period of time. They deny that the Iran-China Group was based in China, asserting it was an Iranian joint-stock company funded by Chinese investors.
The Fishbeck Claimants admit the allegations in Footnote 7 and that the government seeks to forfeit Bitcoin stored at the 25 cryptocurrency addresses in the table following Paragraph 44. They deny that the table accurately identifies the amount of Bitcoin stored at each address in December 2020, provides a complete list of addresses, or identifies all Bitcoin owned by the Iran-China Group currently in the government’s possession. The Fishbeck Claimants also deny that the Defendant Cryptocurrency solely comprises proceeds of Chen’s fraud.
The Fishbeck Claimants assert affirmative defenses, including the government’s failure to provide adequate notice of their potential right to proceeds, their possession of an interest in the Defendant Cryptocurrency, and the Defendant Cryptocurrency constituting a blocked asset under TRIA. They also claim entitlement to attach and execute upon the Defendant Cryptocurrency because they have satisfied TRIA.
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