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Indicted poker-playing lawyer Tom Goldstein appealed his release conditions on Thursday after a Maryland judge ordered that his electronic devices be monitored.
Goldstein was arrested earlier this month after investigators said he violated his bail by sending millions from undisclosed cryptocurrency accounts. Goldstein later provided evidence showing he didn't own the accounts and Chief U.S. Magistrate Judge Timothy Sullivan ordered his release.
But Judge Sullivan said he was "highly suspicious that Mr. Goldstein has used cryptocurrency while on conditions of release" and modified his release conditions to prohibit cryptocurrency use and require electronic device monitoring.
Attorneys for Goldstein challenged the ruling on Thursday, arguing that the monitoring condition "arose from a highly misleading and inaccurate ex parte detention motion filed by the government that resulted in (Goldstein's) unjustified and unwarranted incarceration."
Tom Goldstein Out of Custody But Can't Use Crypto
Tom Goldstein Case Timeline
- Jan. 16, 2025 - Federal grand jury charges Tom Goldstein with 22 counts related to tax evasion, preparing false and fraudulent tax returns, and making false statements on mortgage applications.
- Jan. 21, 2025 - Goldstein revealed to be "best friends" with social media playboy Dan Bilzerian, who called him a reckless gambler.
- Jan. 28, 2025 - Goldstein pleads not guilty and is ordered to stop playing poker while awaiting trial.
- Feb. 10, 2025 - Tom Goldstein is arrested after prosecutors accuse him of making transactions from undisclosed cryptocurrency wallets.
- Feb. 11, 2025 - Goldstein denies ownership of the wallets and demands release.
- Feb. 13, 2025 - Goldstein is released from custody as Magistrate Judge Timothy J. Sullivan found the government hadn't proved by "clear and convincing evidence" that he violated pretrial release conditions. Judge Sullivan orders that Goldstein have his electronic devices monitored and be prohibited from using cryptocurrency.
- Feb. 27, 2025 - Goldstein appeals release conditions and calls device monitoring "drastic."
"Drastic Condition of Release"
The attorneys called the electronic device monitoring a "drastic condition of release" that "creates a significant risk of the disclosure of privileged information." They noted that Pretrial Services had only approved two devices, his cell phone and desktop computer.
They further argued that the cryptocurrency and monitoring requirements were based on "erroneous factual conclusions" and "a very seriously mistaken understanding of how cryptocurrency operates."
Prosecutors had accused Goldstein of sending and receiving millions in cryptocurrency from two undisclosed crypto wallets since being indicted. Goldstein was arrested and later released after Judge Sullivan found the government hadn't proven that Goldstein owned the wallets "by clear and convincing evidence."
But Sullivan added that he found it "quite possible" that Goldstein owned the accounts and ordered him to disclose all financial accounts and crypto wallets and to "not access, receive, send and/or transfer any cryptocurrency.”
Goldstein's attorneys argued on Thursday that the government's "backup theory" that he co-owned or controlled the wallets had "no merit."
"No document or witness testimony establishes or even suggests that (Goldstein) had any ability to control the wallets, including control the transfer of the funds they contain," they wrote.
Goldstein was charged last month in a 22-count indictment related to high-stakes poker winnings and losses. He is accused of tax evasion, preparing false and fraudulent tax returns, and making false statements on mortgage applications. He has plead not guilty to all charges.
Prosecutors later said Goldstein posed a "significant" flight risk who "threatens to undermine the integrity of these proceedings," alleging that he "instructed third parties, including potential witnesses in the case, to destroy evidence that is relevant to the charges."
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