"My client is prepared to have all the money forfeited to the victims' family that prevailed at trial first, but had it reversed because of ... a highly technical (court) process," J.W. Carney said Friday.
The families of alleged murder victims Donahue and Brian Halloran -- whom Bulger is also accused of killing -- won a judgment in 2009, but an appeals court tossed it out, saying the suit was filed too late.
The Donahue family has been in court virtually every day of this trial.
There remains a question as to whether Bulger's offer is a meaningful one. The government has seized the money, so technically it no longer belongs to Bulger. Only if he is found innocent and the money is found to have been earned legitimately would it be returned.
Carney confirmed outside of court that Bulger's forfeiture decision was made shortly before it was announced, after his client heard all of the witness testimony.
Tommy Donahue expressed appreciation to Bulger's defense attorneys Hank Brennan and Carney.
"I tip my hat to Carney and Brennan," Tommy Donahue said, referring to the gesture of forfeiting Bulger's recovered assets to his family and Halloran's family.
In a 32-count indictment, prosecutors accuse Bulger of participating in 19 murders, racketeering, money laundering and extortion during some two decades.