Samourai Wallet Founders Plead Guilty and Forfeit Bitcoin
The Department of Justice has provided an update regarding the whereabouts of $6.37 million worth of Bitcoin. This Bitcoin was forfeited from Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, who had previously pleaded guilty to conspiring to operate an unlicensed money transmitting business.
This clarification follows recent scrutiny of the United States Marshals Service concerning reports about the potential sale of forfeited Bitcoin.
In August 2025, the defendants entered their guilty pleas in the Southern District of New York. Their plea agreements stipulated that they would forfeit assets linked to their offense, which included approximately 57.55 BTC. At the time of the transfer, this amount was valued at roughly $6.37 million.
Prosecutors stated that Rodriguez and Hill operated a cryptocurrency mixing service that facilitated over $200 million in illicit transactions. These transactions were associated with darknet markets, cybercrime, and fraud.
According to court records, the Bitcoin was forfeited under 18 U.S. Code 982, a statute that governs criminal forfeiture in cases involving money laundering and unlicensed money transmission.
US Marshals Deny Bitcoin Sale Amidst Conflicting Reports
The handling of Bitcoin forfeited by the Samourai Wallet developers came under scrutiny due to conflicting reports about whether these assets had been sold. Bitcoin Magazine had cited court filings and blockchain data suggesting that the forfeited Bitcoin had been transferred and potentially liquidated.
This suggestion stood in contrast to a White House directive that mandates forfeited Bitcoin be held within the U.S. Strategic Bitcoin Reserve.
The United States Marshals Service has denied any sale of the assets. In a statement provided to DL News, the agency asserted that it “has not sold the Bitcoin mentioned” and expressed confusion regarding the source of Bitcoin Magazine's information.
The USMS further clarified that crypto liquidations require multiple levels of approval. They also noted that only assets meeting the specific criteria outlined in Executive Order 14233 are eligible for disposal.
DOJ Confirms Assets Remain Unliquidated via White House Advisor
Patrick Wit, Executive Director of the President’s Council of Advisors for Digital Assets, shared an update on January 16th, originating from the Department of Justice.
Wit posted on X (formerly Twitter):
"UPDATE: we have received confirmation from DOJ that the digital assets forfeited by Samourai Wallet have not been liquidated and will not be liquidated, per EO 14233."
Wit further elaborated that the U.S. government intends to retain the Bitcoin on its balance sheet as part of the Strategic Bitcoin Reserve, rather than proceeding with a sale.