LAW.coLAW.co

United States v. Approximately 1,210,734.00 Usdt

2026-08-24

Summary

Holding. The court denied the claimants' motion to proceed under pseudonyms and to file under seal. The claimants failed to satisfy the legal standard requiring that pseudonymity be warranted only in rare circumstances, as the asserted privacy interests were not sufficiently intimate in nature, the risk of harm was speculative and economic rather than physical or mental, the claimants were adults rather than minors, and the public had a strong interest in knowing the identities of recipients of seized criminal assets.

A group of twenty-one victims of a cryptocurrency fraud scheme filed claims seeking recovery of digital assets seized by the Government in a civil forfeiture action. These claimants requested permission to proceed anonymously and file their verified claims under seal, citing concerns about their privacy and vulnerability to future financial fraud targeting. The court rejected this request, finding that the claimants failed to demonstrate sufficiently compelling reasons to overcome the strong legal presumption favoring public and transparent litigation.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether victims in civil forfeiture proceedings may proceed anonymously
  • Standard for granting pseudonymous status in federal litigation
  • Public interest in transparency regarding distribution of seized assets
  • Adequacy of generalized harm claims versus particularized risk analysis

Procedural posture

The court considered a motion filed by twenty-one claimants seeking to proceed under pseudonyms and file their verified claims under seal in a civil forfeiture action brought by the Government to recover cryptocurrency assets allegedly obtained through fraud.

Authorities cited

Opinion

majority opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,

Plaintiff,

v. Case No. 26-cv-1988 (TSC)

APPROXIMATELY 1,210,734.00 USDT,

Defendant in rem.

AWKO CLAIMANTS,

Claimants.

OPINION AND ORDER

Before the court is the AWKO Claimants’ Motion for Leave to Proceed Under Pseudonyms

and to File Under Seal verified claims to property seized by the Government. Mot. to Seal and

Proceed Under Pseudonyms at 4, ECF No. 5 (“AWKO Mot.”). For the following reasons, the

motion is DENIED.

This case arises out of a cryptocurrency fraud scheme which enticed victims to invest in

fake online exchanges. Compl. ¶ 32-46, ECF No. 1. The scammers then siphoned that money into

a digital wallet. Id. The Government seized that wallet and initiated a civil forfeiture action in

June 2026 to recover the funds, which constitute 1.2 million tokens of the virtual currency

“Tether.” Id. ¶ 10. On August 5, a group of twenty-one claimants, referring to themselves as

“AWKO Claimants,” filed verified claims to the seized property. Notice of Verified Claims at 1,

ECF No. 4. They alleged that they were all victims of the cryptocurrency scam and retained “valid

ownership interest[s]” in the seized funds. Verified Claims of Victim-Claimants at 1, ECF No. 4-Page 1 of 5

1. The AWKO claimants sent unredacted copies of their verified claims to the Government, Notice

of Verified Claims at 1, but seek to proceed under pseudonyms and file their verified claims under

seal.

The Federal Rules create a strong “presumption against pseudonymous litigation.” Doe v.

Hill, 141 F.4th 291, 293 (D.C. Cir. 2025). That presumption serves to “protect the public’s

legitimate interest in knowing all of the facts involved” in a lawsuit, “including the identities of

the parties.” Id. (quoting In re Sealed Case, 971 F.3d 324, 326 (D.C. Cir. 2020)). Accordingly,

the D.C. Circuit generally requires “parties to a lawsuit to openly identify themselves.” Id.

(quoting Sealed Case, 971 F.3d at 326). A district court may, however, grant the “rare dispensation

of pseudonymous status.” Id. To evaluate when a pseudonym is warranted, courts balance five

non-exhaustive factors: (1) whether the justification asserted by the requesting party is merely to

avoid the annoyance and criticism that may attend any litigation or is to preserve privacy in a

matter of a sensitive and highly personal nature; (2) whether identification poses a risk of

retaliatory physical or mental harm to the requesting party; (3) the ages of the persons whose

privacy interests are sought to be protected; (4) whether the action is against a governmental or

private party; and (5) the risk of unfairness to the opposing party from allowing an action against

it to proceed anonymously. Sealed Case, 971 F.3d at 326.

The court finds that the AWKO Claimants have not overcome the strong presumption of

openness. On the first factor, the Claimants allege “Strong Privacy Interests” in their “identities”

as “victims of crimes.” AWKO Mot. at 4. But the mere risk that their identities will be made

public is not sufficient to merit pseudonymous status under this factor. Rather, the privacy interests

that qualify “commonly involve[] intimate issues such as sexual activities, reproductive rights,

Page 2 of 5

bodily autonomy, medical concerns, or the identity of abused minors.” Sealed Case, 971 F.3d at

327. Accordingly, this factor cuts against the Claimants.

The Claimants fare no better on the second factor. They suggest that “exposing [their]

identities to the public will subject them to the (highly likely) potential of repeated victimization

by fraudsters.” AWKO Mot. at 5. That is particularly true, they say, because “a significant

number” of them are “seniors, a demographic frequently victimized through financial scams.” Id.

For starters, the argument fails to address those Claimants who are not seniors. What is more, the

“asserted injuries are purely economic,” not physical or mental, “and speculative at that.” Sealed

Case, 971 F.3d at 326. Claimants do not provide any particularized details about the likelihood of

future harm; rather, they offer broad generalizations about what might happen to all twenty-one of

them. Such “speculative and unsubstantiated claims of harm” do not favor pseudonymity. Sealed

Case, 971 F.3d at 328 (quoting Doe v. Public Citizen, 749 F.3d 246, 274 (4th Cir. 2014)).

On the third factor, regarding age, Claimants are not minors. And “[w]here victims are not

minors, courts are generally less inclined to let the alleged victim proceed in litigation under a

pseudonym.” Doe v. Cabrera, 307 F.R.D. 1, 7 (D.D.C. 2014).

The fourth factor, concerning the defendant’s identity, also cuts against the AWKO

Claimants. This factor “looks to the identity of the opposing party as a tool for measuring the

public interest in transparent litigation.” Hill, 141 F.4th at 298. Here, the public interest in

openness is high, even though Claimants have not technically sued the Government or a private

party. That is because the case involves the distribution of a significant sum of money seized from

criminals operating a criminal cryptocurrency scheme. Citizens have a strong interest in knowing

to whom the Government will distribute these funds, in part because that will permit them to

“investigate abuses of the judicial process” or other improprieties. Id. at 293.

Page 3 of 5

The final factor favors the AWKO Claimants. As they explain, proceeding under

pseudonyms will not prejudice the Government because it has already received unredacted verified

claims displaying their full names and other information. See AWKO Mot. at 5-6. Nor will it

prejudice any other potential claimants because none has come forward.

But that one factor alone cannot displace the other four factors, which all favor

transparency. Accordingly, the court will deny the AWKO Claimants’ Motion to Proceed under

Pseudonyms and File Under Seal. Claimants’ reliance on United States v. Lichtenstein, 769 F.

Supp. 3d 32 (D.D.C. 2025) does not change this conclusion. See AWKO Mot. at 4. There, the

court permitted victims of a cryptocurrency scam to proceed under pseudonyms and file documents

partially under seal. See Lichtenstein, 769 F. Supp. 3d at 41. But that was because the Government

had expressly consented to the “masking of [John Doe’s] name as well as any” personally

identifiable information in filings. Id. at 39. There is no such consent on the record. And the

court cannot agree with Claimants’ suggestion that the Government has implicitly agreed to or

recognized the importance of secrecy just because it identified the four victims in its complaint by

pseudonyms, see AWKO Mot. at 3-4. There is no reason to believe the Government has consented

to letting all twenty-one Claimants now before this court proceed under pseudonyms.

Individual claimants may file motions to proceed pseudonymously or to file under seal

documents containing sensitive information. But the court cannot grant one generalized motion

for all twenty-one claimants that is devoid of any particularized analysis.

For the foregoing reasons, the AWKO Claimants’ motion is DENIED.

It is SO ORDERED.

Page 4 of 5

Date: August 24, 2026

Tanya S. Chutkan

TANYA S. CHUTKAN

United States District Judge

Page 5 of 5