Brady Thompson and Mike Mariner were long-time friends, real estate development partners, and early investors in Bitcoin, acquiring significant positions when BTC was trading under $1,000. By 2020, their portfolios had grown substantially.
Brady continued to hold his Bitcoin in a personal wallet under his name. Mike, on the other hand, worked with his advisors to establish a South Dakota self-settled asset protection trust (APT). He transferred a large portion of his BTC into the trust, naming himself as a beneficiary and appointing First Covenant Trust & Advisors as his independent trustee.
Five years later, a guest at a short-term rental property co-owned by Brady and Mike suffered a severe injury on the premises and sued both of them. After a lengthy legal battle, a million-dollar judgment was entered against both Brady and Mike.
Brady’s Bitcoin—still titled in his individual name—is vulnerable to the creditor’s claim. The court ordered its seizure to satisfy the judgment. Mike’s position was different. His BTC was held in a properly structured South Dakota APT that had been in place for more than five years, well beyond the state’s 2-year statute of limitations for transfers. His interest in the trust is protected under South Dakota law. The creditor was unable to reach the trust assets, which remain secure for Mike and his future beneficiaries.
Brady and Mike both believed in the long-term value of Bitcoin. But only one of them took steps to protect that value. An Asset Protection Trust isn’t about hiding wealth—it’s about stewarding it wisely, shielding it from the unforeseen, and securing it for the future.