Key Highlights
- The U.S. Department of Justice allegedly sold $6.3M in forfeited Bitcoin, raising concerns over potential violations of EO 14233 and the preservation of a strategic crypto reserve.
- Senator Lummis warns U.S. Bitcoin sales may break federal rules, risking strategic reserves and repeating past costly mistakes.
- The liquidation raises questions on DOJ discretion, SDNY independence, and the Trump Administration’s support for non-custodial crypto developers.
The U.S. Department of Justice (DOJ) reportedly sold $6.3 million in Bitcoin forfeited by Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill, raising concerns over a potential violation of Executive Order 14233.
As per Bitcoin Magazine report, the act requires that any Bitcoin (BTC) seized via criminal forfeiture shall be maintained in the U.S. Strategic Bitcoin Reserve. The sale, potentially via a route that did not involve government holding, has caused concern regarding compliance and crypto assets treatment.
The claim is based on an unpublished document titled “Asset Liquidation Agreement”, reviewed by Bitcoin Magazine, noting BTC that Rodriguez and Hill forfeited “will be sold, or already has been.”
Senator Lummis expresses wider concerns
Senator Cynthia Lummis voiced her concerns on X, questioning why the government continues liquidating their Bitcoin holdings despite President Donald Trump’s clear instructions to preserve these assets.
“We can’t afford to squander these strategic assets while other nations are accumulating bitcoin,” the senator said, “I’m deeply concerned about this report.”
Last year, Lummis posed similar questions; highlighting that past U.S. Marshals Bitcoin auctions have resulted in financial losses. She referenced the Silk Road Bitcoin sale, emphasizing that rushing the sale contradicts the creation of a National Bitcoin Stockpile.
“This rushed approach, occurring during the presidential transition period, directly contradicts the incoming administration’s stated policy objectives regarding the establishment of a National Bitcoin Stockpile,” Lummis stated. The senator also noted that this sale comes at a politically sensitive time and could undermine the government’s strategy to retain BTC as a strategic asset.
Forfeited BTC and USMS handling
According to the “Asset Liquidation Agreement” obtained by Bitcoin Magazine, Rodriguez and Hill transferred 57.55353033 BTC, worth $6,367,139.69 at the time, to the U.S. Marshals Service on November 3, 2025. Instead of direct USMS custody, the funds appear to have been sent to a Coinbase Prime address for sale.
Arkham Intel shows that this address now holds a zero balance, implying the Bitcoin has already been liquidated. This action, if confirmed, goes against EO 14233, which clearly prohibits the sale of government bitcoin unless authorized in specific scenarios.
Legal context and SDNY’s role
The forfeiture stems from 18 U.S. Code § 982(a)(1), which orders individuals violating money transmission laws to surrender property involved in the offense. The EO and related statutes do not require Bitcoin liquidation. Hence, the SDNY’s handling of the Samourai case raises questions about compliance with federal directives.
The fact that the district is known to have an independent approach makes the issue even more complicated. In addition, the Samourai case was pursued despite the directives of the Deputy Attorney General Todd Blanche issued in April of the year 2025, telling the DOJ not to target the non-custodial crypto-related services.
Political implications and industry concerns
The sale of the forfeited Bitcoin also reignites rumors about the Trump Administration’s policy towards cryptos, with a majority of pro-crypto advocates wondering whether the Trump Administration is determined to enforce EO 14233. It has also come to light that Trump may grant a pardon to Rodriguez, indicating that Trump may be supportive of non-custodial crypto developers.
A review by the DOJ into the sale could further solidify the administration’s pro-Bitcoin stance. In addition, the USMS’s actions have brought into sharp focus the increasing tension between discretionary actions by government departments and presidential decrees.
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