Nova Scotia court orders return of Bitcoin wallet to convicted killer’s family

A Nova Scotia Supreme Court judge has directed authorities to return a laptop containing the Bitcoin wallet of convicted killer William Sandeson to his family, following a hearing in Halifax. The court determined there was insufficient evidence connecting the cryptocurrency to the 2015 killing of Taylor Samson.

Judge rules link to crime unproven

Presiding over the case, Justice John Bodurtha stated that the Crown could not establish a clear connection between the Bitcoin holdings and the murder. Sandeson, currently serving a life sentence in a Quebec prison, participated in the court session via video link.

Justice Bodurtha emphasized that the suggestion Sandeson intended to use the Bitcoin in a drug deal remained hypothetical, and there was no proof that any cryptocurrency was used in relation to the crime.

Justice John Bodurtha explained that prosecutors failed to demonstrate any evidence that the Bitcoin on the device was used or intended to be used as part of the offence, rendering the Crown’s theory speculative.

While the laptop will be released to Sandeson’s family, $5,000 in cash found hidden at his apartment will remain confiscated. The judge determined that the cash constituted offence-related property.

Police discovered the money concealed at the bottom of a garbage can during their investigation.

Disputed value and appeals background

Testifying at trial, Sandeson said he used a $200,000 line of credit, which his mother had co-signed to support his university education, to purchase drugs. This credit line still carried an $80,000 balance at the time of his arrest.

The value of the Bitcoin wallet remains contentious. Sandeson has estimated its worth at between $8,000 and $10,000, while the Samson family’s lawyer argued the current value could exceed $200,000, reflecting substantial growth in Bitcoin’s price. At the time of reporting, Bitcoin traded at approximately $78,563 per coin.

A 2024 decision by Justice Cindy Bourgeois of the Nova Scotia Court of Appeal found Sandeson held roughly $640,000 in Bitcoin and cash at the time of incarceration. That judgment rejected Sandeson’s application for state-funded legal assistance in his appeal.

Mini dictionary: Dalhousie University, one of Canada’s leading research universities, is located in Halifax, Nova Scotia, and is widely recognized for its programs in health, science, and law.

Background of the murder case

In August 2015, both Sandeson and Samson were students at Dalhousie University. Sandeson, days away from entering medical school, arranged a meeting at his Halifax apartment to facilitate a cannabis transaction involving more than 18 kilograms.

During the meeting, Sandeson fatally shot Samson, retained the drugs and money, and disposed of the body in the Bay of Fundy. Authorities have never located Samson’s remains.

Sandeson’s initial conviction for first-degree murder was overturned on appeal. During a retrial in 2023, a jury found him guilty of second-degree murder. Sandeson acknowledged the shooting but maintained it was an act of self-defense.

The Samson family has made efforts to keep the laptop containing the digital wallet withheld. In December 2022, a court issued a temporary order restricting its return. Samson’s mother, Linda Boutilier, and brother, Connor Samson, also pursued a wrongful death suit against Sandeson.

Legal counsel for the family, James Goodwin, argued any Bitcoin assets should be available as potential payment for damages in the event their lawsuit succeeded.

Wider debate on crypto and crime

Sandeson reopened the dispute in April by filing a motion for the return of seized property. The Crown responded by seeking to retain both the cash and the laptop, alleging both were proceeds of crime. Linda Boutilier has consistently attended court proceedings and was present for the ruling, but did not comment.

Courts in the UK and US are also confronting legal issues surrounding digital assets seized in criminal investigations. In one case, more than 61,000 BTC reportedly linked to Qian Zhimin has prompted litigation in the UK, and a US prisoner’s claim to $345 million in lost Bitcoin was rejected.