U.S. Seeks Forfeiture of Crypto Proceeds from Man Convicted of Attempting to Leak Classified Info

News | May 16, 2024 By:

On Thursday, April 25, 2024, the United States government filed a motion for forfeiture of property belonging to Jareh Sebastian Dalke, who pleaded guilty to charges related to attempting to transmit national defense information to foreign agents.

Dalke, whose plea agreement was entered into court on October 23, 2023, had been indicted by a grand jury in October 2022 on six counts of attempting to transmit national defense information to an officer or agent of a foreign government in violation of U.S. law. According to court documents, Dalke communicated via email with an individual he believed to be associated with the Russian government, but who was actually an undercover FBI agent. In the emails, Dalke offered to provide access to classified information he had access to through his job with the U.S. government in exchange for cryptocurrency payments.

The motion filed by federal prosecutors requested that Dalke forfeit over $4,600 in proceeds that were not recovered after the government seized cryptocurrency deposits worth approximately $16,500 that Dalke received from the undercover agent in exchange for initial discussions about sharing classified defense information. Court documents state that Dalke transferred the cryptocurrency deposits to exchange accounts and his personal bank account. The government was unable to recover $4,628.21 that Dalke had transferred.

Prosecutors also sought forfeiture of a Sig Sauer P938 pistol and empty magazine that were confiscated from Dalke’s person when he was arrested by FBI agents on September 28, 2022. On that day, Dalke had driven from his home in Colorado Springs to Union Station in Denver to transmit classified files from his laptop to the undercover agent, as instructed. He was apprehended moments later.

If approved by the court, the motion would allow the government to seize the forfeited property and firearms and require Dalke to pay the monetary judgment. A preliminary forfeiture order is necessary for the government to provide notice to third parties of its intent to dispose of seized assets. A judge will review the motion and evidence to determine what property, if any, Dalke will be ordered to forfeit as a result of his criminal conduct.

Please contact BlockTribune for access to a copy of this filing.