Encrypted crypto seed phrase found in suspect’s backpack in New York murder case

Police in Manhattan said investigators recovered a paper labeled “Encrypted — Cryptocurrency Seed Phrase” from a backpack belonging to suspect Manzione, arrested five days after the shooting at a Pennsylvania McDonald’s. A pre-trial hearing introduced a heavily redacted photo of the document as evidence, but prosecutors did not disclose which cryptocurrency the seed phrase related to or whether the defendant controls any associated wallets or assets. Authorities have not alleged illicit activity tied to the seed phrase; the matter remains under judicial review. Experts note the case highlights the growing relevance of digital wallets, seed phrase security and blockchain tracing in criminal investigations. Key names: suspect Manzione; location: Manhattan (New York) and arrest in Pennsylvania. No coins or wallet balances were identified.
Neutral
The news is primarily legal/criminal and does not provide information about transferable crypto assets, exchange listings, market-moving balances, or evidence of fraud. The discovery of a seed phrase in a criminal investigation can raise general concerns about wallet security and the role of blockchain forensics, but absent details on the coin, wallet ownership, or asset transfer, there is no direct catalyst expected to move crypto markets. Historically, isolated legal incidents involving private keys or wallet seizures have had neutral to limited short-term effect unless large, identifiable balances or prominent platform involvement are disclosed. Short-term: possible localized volatility in sentiment among privacy-focused traders or increased interest in custody/security solutions. Long-term: reinforces demand for better wallet security and may prompt greater regulatory or investigative attention to on-chain tracing tools, but not an immediate price driver.