A Maryland federal judge has revoked the release of prominent Supreme Court attorney and private-game high-stakes poker player Thomas Goldstein after a magistrate judge viewed "clear and convincing evidence" that Goldstein had used two private cryptocurrency accounts to transfer more than $14 million in the past week, violating his terms of release.
Goldstein was released after being indicted on 22 felony counts of tax evasion and fraud over a seven-year span, dating back to when he won over $50 million in ultrahigh-stakes poker games in 2016, then lost most of the money. His opponent in the priciest of the private heads-up matches also filed a government tax form reporting Goldstein's miscellaneous winnings. That allegedly contributed to an ongoing scheme where Goldstein continued to live a luxurious lifestyle while deceiving bank creditors and owing millions to the IRS.
Goldstein was released on a bond secured by an upscale Washington DC home he co-owns with his wife, which has led to other complications. In the case's latest development, just prior to a hearing on Monday, he was re-arrested and his release revoked following investigators' discovery and filing of the two crypto accounts.
When Goldstein was released on bond, he was ordered, “Do not open any new bank accounts; do not obtain and/or draw on any lines of credit; do not transfer any funds [without] prior pretrial approval.”
Crypto accounts omitted from disclosures
Also a condition of Goldstein's release on bond was that he disclose all of his existing bank accounts and other sources of financing, but he omitted the two crypto wallets. Goldstein also appeared to have omitted in a separate submission, involving the DC property as bond collateral, that the upscale house was in fact co-owned with his wife, writer/attorney Amy Howe.
Goldstein was rebutted in his attempts to supplant other property owned by family for the DC tract, and he then filed an unusual pro se motion appealing that rebuttal, with a hearing on that matter scheduled for Wednesday.
According to court documents obtained by PokerOrg, the recent crypto activity in the Goldstein-controlled wallets roughly corresponds with his pro se motion to replace the collateral property and a subsequent government response to deny that motion.
Investigators discovered after Goldstein's bond hearing that he controlled at least two crypto wallets with the last four digits of "935D" and "54E3" (hexadecimal). Goldstein had used the 935D wallet since late 2022 and since then had made over $75 million in deposits and withdrawals using the wallet. The second wallet, 54E3, was created only recently and had been used for about $250,000 in transactions.
Though it was occasionally dormant, prosecutors allege that Goldstein reactivated the 935B wallet with a small test transaction on February 4, between pre-trial services hearings on February 2 and February 6. Prosecutors noted that Goldstein could have disclosed the wallets' existence at either hearing but failed to do so. Goldstein also filed his ex parte motion, unusual because he has already obtained legal representation, on February 5.
The prosecutors' filing declares, "On February 4, 2025, at 7:02 AM EST — six days after Defendant’s initial appearance and the day prior to Defendant’s pro se motion — approximately $10 worth of USDT was sent to the wallet in what appears to have been a test transfer.
"At 10:28 AM EST, approximately $8 million of USDT was sent to the wallet. Less than an hour later, at 11:18 AM EST, approximately $3 million of USDT was sent out of the wallet, leaving approximately $5 million in the wallet. On February 6, 2025, at 11:41 PM EST — approximately 30 minutes after the Government filed its motion to strike Defendant’s pro se motion — approximately $3 million more of USDT was sent out of the wallet, leaving approximately $2 million in the wallet."
Prosecutors also submitted documentary evidence of the transactions, as shown in this mostly redacted screenshot of recent activity in the 935B wallet:
Flight risk, and the 'Fixer'
Another condition prosecutors sought, and that the magistrate judge agreed with, is the alleged deception involved significantly increased Goldstein becoming a flight risk. In seeking the bond revocation, prosecutors wrote, "Defendant’s conduct demonstrates that he is a serious risk of flight, that he cannot abide by the conditions of release, and that he has lied to this Court and Pretrial Services. A rebuttable presumption that Defendant is a danger to the community now applies, and Defendant’s conditions of release should be revoked."
The latest development introduced another twist to the rapidly expanding legal saga. In obtaining Goldstein's financial and communications records, investigators also allegedly discovered that Goldstein had employed a "self-described 'fixer'" to help move money between crypto and traditional-currency accounts and between Goldstein and other persons.
The 'fixer' was described as having been "the CEO of a West Coast-based luxury travel and concierge service" who offered his services to ultra-wealthy clients, allegedly including Goldstein. His identity has not been disclosed in court documents. The investigators located several episodes of connected communications and crypto transactions between the alleged fixer and Goldstein, such as the following:
"In mid-April 2023, Defendant was messaging with the Fixer regarding a transaction in which the Fixer acted as a middleman between Defendant and another individual from whom Defendant sought to obtain $500,000 worth of cryptocurrency. Defendant told the Fixer how to structure the transaction, stating, 'I would have him send it to a wallet of yours. Then do an invoice to sell it to me. I’ll wire to you and have you send the coins for me.'” This was followed by several chat exchanges detailing and confirming the process as it played out.
