Canadian Judge Orders Bitcoin Wallet Returned to Family of Convicted Killer

A Nova Scotia Supreme Court judge has ordered that a laptop holding a Bitcoin wallet be returned to the family of William Sandeson, who is serving a life sentence for the 2015 murder of Dalhousie University student Taylor Samson. Justice John Bodurtha ruled that the Crown had not proved the cryptocurrency was linked to the killing, according to a report by Decrypt citing Global News.

What the court decided

Bodurtha said the Crown had not shown the cryptocurrency was used in the drug transaction, was proceeds of crime, or was otherwise tainted by criminality. He described its potential use in the deal as "hypothetical." The judge did, however, rule that about C$5,000 in cash found in Sandeson's apartment after the murder is offence-related property and will not be returned. Sandeson filed a motion in April seeking the return of personal items seized when police searched his apartment after his 2015 arrest. He has said the Bitcoin was worth between C$8,000 and C$10,000. A lawyer for Samson's family, who is pursuing a separate wrongful death lawsuit, has said the holdings could now be worth as much as C$200,000. Global News did not report how much Bitcoin the wallet holds.

Background to the case

Prosecutors said Sandeson arranged for Samson, 22, to visit his apartment on August 15, 2015, to sell him cannabis that Sandeson had arranged to buy for C$40,000. Sandeson shot Samson, kept the drugs and money, and later admitted dumping the body in a river that feeds the Bay of Fundy. Samson's remains have never been found. Sandeson was convicted of first-degree murder in 2017, but an appeals court overturned the verdict in 2020. At a second trial in 2023, he admitted shooting Samson but said he acted in self-defence. The jury found him guilty of second-degree murder, which carries an automatic life sentence. He is serving his sentence in Quebec and will be eligible for parole in 2030.

Why it matters for the industry

The ruling is not about the crypto industry as such, but about a broader principle: cryptocurrency found in a person's possession does not by itself become evidence of a crime. Prosecutors must link the assets to illegal activity, and a hypothesis that crypto was used in a deal is not enough. For teams handling seizures and compliance, the case shows how courts assess digital assets in criminal proceedings.