Scott Chandler dodges prelim injunction contempt violation
While they’ve managed to succeed in having Chandler turn over his acquired bitcoin, the FTC’s contempt motion has been denied.
The FTC’s show cause contempt motion stemmed from Chandler initially refusing to turn over his bitcoin, as required by a previously granted preliminary injunction.
Chandler had argued the injunction would size bitcoin he’d legitimately obtained, but was struck down back in October.
Evidence Chandler attempted to submit (but was denied upon objection by the FTC), suggests he’d purchased around $30,000 in bitcoin.
For some reason Chandler also attempted to submit a “list of friends who lost money”, but that was objected to and denied as well.
Comparatively the FTC submitted four cell phone messages and what appears to be an email conversation, all of which were admitted.
As per a brief November 16th order, following a two-day hearing on the FTC’s contempt motion, the court found ‘the evidence did not establish that Mr. Chandler intentionally violated the Preliminary Injunction Order‘.
The important distinction lies in intent.
Obviously Chandler violated the injunction by not turning over his bitcoin. Evidence presented by the FTC however did not convince the court this violation was intentional, i.e. for the purpose of violating the injunction in and of itself.
The ruling wasn’t a complete loss for the FTC though. The court also directed Chandler to provide the FTC with access to his Skype, WhatsApp and Facebook Messenger accounts.