Scott Chandler has no choice but to turn over his bitcoin, following denial of a Motion for Reconsideration.

Chandler had
filed the motion
in response to an injunction ordering him to surrender held bitcoin to the FTC.

In his motion, Chandler argued new evidence showing some of his bitcoin was obtained through “legitimate cryptocurrency trading” warranted reconsideration.

In an October 23rd order, the court disagreed and found

the issues raised by Chandler within the Motions were already raised in Chandler’s Objections and considered by the Court.

Chandler therefore fails to present any new evidence worthy of the Court’s reconsideration.

Fed up with Chandler’s stalling, the FTC also filed a show cause for contempt hearing motion on October 6th.

The regulator alleged that by not handing over his bitcoin, Chandler was in violation of the
preliminary injunction
previously granted against him.

By order issued on October 23rd, the FTC’s show cause motion has been referred to a Magistrate Judge for a report and recommendation.

As I understand it the denial of Chandler’s reconsideration motion will mean he has no choice but to hand over his bitcoin, or risk potentially heavy contempt penalties.

No ruling yet on the stipulated order regarding Thomas Dluca’s deleted emails. Stay tuned…

Update 31st October 2018 – 
The stipulated order regarding Thomas Dluca’s emails was accepted by the court on October 29th.

Chandler’s additional motion for a stay on his handing over bitcoin was denied the same day.

Separately on On October 24th, the FTC withdrew its Motion for Order to Show Cause against Louis Gatto.

Like Chandler, Gatto initially
refused to comply with the granted injunction
.

I don’t see any other reason than cooperation for withdrawal of the FTC’s motion, so we can safely assume Gatto has now identified held assets to the FTC as required.

🤖 Quick Answer

Why did Scott Chandler lose his Motion for Reconsideration regarding bitcoin surrender?
The court rejected Chandler's motion because the issues he raised had already been presented in his previous Objections and thoroughly considered. The judge determined that Chandler failed to provide any new evidence warranting reconsideration of the injunction ordering him to surrender bitcoin to the FTC.

What argument did Chandler present in his reconsideration motion?
Chandler argued that new evidence demonstrated some of his bitcoin was obtained through legitimate cryptocurrency trading activities. He contended this evidence was sufficiently substantial to warrant the court's reconsideration of its previous decision requiring asset surrender.

What additional legal action did the FTC pursue against Chandler?
The FTC filed a show cause motion for a contempt hearing on October 6th, alleging that Chandler was deliberately stalling compliance with the court's inj

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