The US Department of Justice (DOJ) violated the Bitcoin reserve order by selling seized BTC

Violation of the Bitcoin reserve order.

President Trump signed Executive Order 14233 on March 6, 2025, establishing SBR as a cornerstone of his administration's cryptocurrency strategy.

This decree specifies that Bitcoin obtained through the seizure of criminal or civil assets "may not be sold" but instead must be transferred to the SBR to enhance national reserves and encourage long-term holding rather than liquidation.

This policy change aims to end the government's auctioning off confiscated BTC , which has historically driven down market prices during sales. The controversy stems from the Justice Department's handling of assets in the infamous Samurai Wallet case. In April 2025, developers Keonne Rodriguez and William Lonergan Hill pleaded guilty to conspiracy to commit money laundering related to their privacy-focused Bitcoin mixing service .

Under the plea agreement, they confiscated 57.55 BTC, the amount that the U.S. Marshals Service (USMS) – acting on instructions from the Department of Justice – had directly transferred to a Coinbase Prime deposit address.

Blockchain analysis shows that this address currently has a zero balance, which suggests that the BTC has most likely been sold off the market.

This wasn't the first point of contention in the Samurai case; previous actions by the Southern District of New York (SDNY) Attorney's Office had been criticized for violating federal guidance on cryptocurrency law enforcement.

Details of the alleged conduct

The document, " Asset Liquidation Agreement ," obtained by Bitcoin Magazine , outlines the transfer process, bypassing the traditional holding and auction procedures of the USMS.

At the time of the transfer, the BTC was worth approximately $6.35 million, based on the current market price.

Cryptocurrency advocates, including U.S. Senator Cynthia Lummis – a key architect of the Bitcoin Act – have expressed "deep concern," arguing that the sale directly violates the sales ban directive of Executive Order 14233.

The shift in the Justice Department's enforcement strategy under Deputy Attorney General Todd Blanche's memorandum "Ending Regulation by Prosecution" has emphasized criminal prosecution over regulatory actions, leading to significant seizures (e.g., $1.28 billion from ransomware groups by 2025 ).

However, this incident highlights potential gaps in aligning practical activities with the requirements of the executive order.

Our review

The Justice Department's handling of the Samourai Wallet BTC seizure represents a potential early stumble in the implementation of President Trump's Strategic Bitcoin Reserve Policy – ​​a policy designed to position the United States as a global leader in digital asset holdings. While the modest scale of the sale limited immediate market disruption, it highlights the challenges in navigating the bureaucratic processes deeply ingrained with bold executive directives.

With increased scrutiny from lawmakers like Senator Lummis and the cryptocurrency community, expect calls for transparency and accountability. This case could ultimately strengthen the SBR framework, ensuring that future seizures contribute to national reserves rather than short-term liquidation. For now, it serves as a reminder that even in a crypto-friendly administration, regulatory harmonization remains an ongoing process.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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