A U.S. appeals court has dismissed a lawsuit by Michael Prem, who alleged the FBI erased a hard drive containing 3,443 Bitcoin. The 11th Circuit Court of Appeals ruled that Prem, convicted of identity theft, could not sue the government for the cryptocurrency loss, as he had previously denied owning such a large amount. Prem sought the return of the hard drive after his release in July 2022, but the FBI had erased it following standard protocol. The court highlighted inconsistencies in Prem's claims, noting he had not listed the Bitcoin as missing assets during his incarceration and had previously stated owning only 200 to 1,500 BTC. The ruling underscores the importance of maintaining access to Bitcoin encryption keys, as the cryptocurrency's value had often exceeded $10,000 at the time, contradicting Prem's valuation claims.