Ninety-five victims and family members of people killed in the September 11, 2001, attacks are seeking a legal interest in 127,271 Bitcoin held by the US government in a civil forfeiture case involving assets allegedly connected to LuBian mining pool.
They argue that the cryptocurrency belongs to an entity linked to Iran, against which they hold judgments awarding more than $671 million in compensatory damages for Iran’s liability in connection with the attacks.
In a filing dated October 12, the claimants, known as the Chairnoff Claimants, submitted a notice asserting an interest in the seized Bitcoin. They want the court to consider their existing judgments against Iran when deciding who has a legal right to the cryptocurrency. However, their filing does not mean they have already won access to the funds.
The group represents victims of 15 people killed
According to the filing, the claimants include representatives and surviving family members of 15 people killed in the World Trade Center attacks in New York City.
In 2021, a US district court found Iran liable for causing those deaths under US law. The court later awarded the claimants more than $671 million in compensation and interest. The victims are now seeking to use assets they believe are connected to Iran to recover the money they are owed.
A separate lawsuit linking LuBian to Iran
The claim follows a separate lawsuit involving the Iran and China Investment Development Group, which allegedly operated the LuBian.com Bitcoin mining pool.
The Chairnoff Claimants said they recently learned about the alleged connection between the group and Iran through that case. They then filed their notice to pursue an interest in the seized cryptocurrency.
In their filing, the claimants argue that LuBian “is an agency or instrumentality of Iran.” This claim is central to their effort because they believe it connects the Bitcoin to a country against which they already hold court judgments.
However, LuBian’s operations and the ownership of the seized funds remain important parts of the dispute. The US government has described LuBian as a Chinese Bitcoin mining operation, although it has acknowledged that the operation had at least one facility in Iran.
The seized Bitcoin may involve other funds
The government has also said the seized Bitcoin may include funds beyond those produced through LuBian’s mining activities. The government’s forfeiture complaint also alleges links between some of the Bitcoin and Chen Zhi and Prince Holding Group, while tracing other portions of the funds through transfers involving centralized cryptocurrency exchanges.
The legal fight is not limited to the Chairnoff Claimants. Other groups, including additional victims of the September 11 attacks, have also filed claims seeking access to Bitcoin. Each group must establish its legal right to the assets.
The US plans further Iran-linked crypto seizures
The dispute comes as the US increases pressure on Iran’s financial networks. On October 9, Treasury Secretary Scott Bessent told Newsmax that the administration expected to seize about $1 billion in cryptocurrency linked to Iran as part of a wider effort to restrict the country’s access to money and international markets.
That expected seizure is separate from the Bitcoin already held by the government. For the Chairnoff Claimants, the immediate issue is whether the court will recognize their claim against the 127,271 BTC.
The court’s decision will determine whether their request can move forward, but it does not yet guarantee that they will receive any of the cryptocurrency.
Also Read: Evernorth Revises SEC Filing, Adds 415K Shares to XRP-Linked Investor Count
