Breaking news reveals that prosecutors from the U.S. Department of Justice (DOJ) have sold Bitcoin valued at $6.3 million, which was confiscated from Samourai Wallet, allegedly breaching a Trump-era executive order, as reported by Bitcoin Magazine.
Bitcoin Magazine’s investigation highlights that the Bitcoins surrendered by Samourai Wallet creators Keonne Rodriguez and William Lonergan Hill to the DOJ amid legal charges were reportedly liquidated by the U.S. Marshals Service (USMS). This transaction is claimed to be in violation of Executive Order 14233 (EO 14233).
Executive Order 14233 explicitly forbids selling Bitcoins seized through criminal or civil proceedings and requires these digital assets to be retained within the U.S. Strategic Bitcoin Reserve (SBR). Contrary to this mandate, reports indicate that the Bitcoins involved in the Samourai Wallet case were put up for sale instead of being preserved under this reserve.
An undisclosed document titled “Asset Liquidation Agreement,” obtained exclusively by Bitcoin Magazine, reveals that defendants consented to transfer Bitcoins worth approximately $6,367,139.69—equivalent to 57.55 BTC at that time—to USMS custody. This agreement was signed on November 3, 2025, by Assistant U.S. Attorney Cecilia Vogel.
Blockchain records show these Bitcoins were sent not directly into a USMS wallet but rather an address linked with Coinbase Prime. The fact this address currently holds no balance suggests these assets may have already been sold off.
The legal analysis presented notes that while these funds fall under seizure provisions outlined in 18 U.S.C §982(a)(1), neither this statute nor other federal laws require converting seized cryptocurrencies into cash; indeed EO 14233 mandates maintaining such government-held BTC without liquidation.
The Southern District of New York Federal Prosecutor’s Office (SDNY), responsible for managing this case, has faced criticism for actions perceived as conflicting with federal cryptocurrency policies. Observers point out SDNY’s ongoing probe into Tornado Cash developer Roman Storm alongside its handling of Samourai Wallet matters as evidence of its independent approach.
Despite an April 7, 2025 directive from then-Deputy Attorney General Todd Blanche declaring an end to “regulation through prosecution,” SDNY reportedly persisted with aggressive enforcement efforts in both cases.
Bitcoin Magazine concludes that selling seized Bitcoins from Samourai Wallet contravenes EO 14233’s clear instructions and reflects a faction within DOJ still viewing Bitcoin primarily as an asset for disposal rather than strategic retention.
*This article does not constitute investment advice.*