U.S. authorities confirmed that Bitcoin forfeited in the Samourai Wallet case was not sold and remains under federal control. The clarification follows market speculation and public scrutiny over a blockchain transfer involving government-held assets.
Officials emphasized that the assets remain compliant with President Donald Trump’s Executive Order 14233. The order requires forfeited Bitcoin to stay within the Strategic Bitcoin Reserve and prohibits liquidation.
Federal Clarification Calms Liquidation Concerns
Questions emerged after blockchain analysts detected a 57.5 Bitcoin transfer from a government-controlled address in November. The funds moved to a Coinbase Prime deposit address, which raised immediate concern among observers. Many feared the transfer indicated a sale of forfeited Bitcoin.
Such an action would have conflicted with the executive order signed in March. Federal officials later confirmed the transfer did not involve liquidation. The Department of Justice verified that the assets remain intact. As a result, concerns about policy violations eased across crypto policy circles.
Executive Order Governs Asset Handling
Executive Order 14233 outlines strict rules for handling forfeited Bitcoin. The order states that any Bitcoin seized through criminal or civil forfeiture must not be sold. Instead, those assets must remain reserve holdings of the United States. The directive also established the Strategic Bitcoin Reserve as a long-term federal asset pool.
Trump signed an executive order last year officially creating a Bitcoin Strategic Reserve in the USA. Agencies managing seized digital assets must follow these requirements. The Samourai Wallet forfeitures fall directly under this mandate. Therefore, any sale would have required explicit legal changes. Officials stressed that no such changes occurred.
Scope of U.S. Government Bitcoin Reserves
Federal Bitcoin holdings have grown steadily through major enforcement actions. Current data shows the U.S. government holds approximately 328,372 Bitcoin. At current prices, the holdings exceed $31.3 billion in value. The total includes assets seized from several high-profile cases. One major addition came in October involving 127,271 Bitcoin.
Authorities linked those assets to a Cambodia-based firm accused of running a pig butchering investment scheme. These seizures form the backbone of the reserve strategy. Officials maintain that accumulation remains budget neutral. They rely on forfeitures rather than taxpayer funding.
Samourai Case and Policy Direction
The Samourai Wallet case remains central to recent attention. Last year, Samourai founders faced up to 25 years for laundering $100M using privacy tools Whirlpool and Ricochet. Federal prosecutors charged developers William Lonergan Hill and Keonne Rodriguez for operating a wallet with a mixing feature. Authorities said the service helped launder millions in illicit funds.
Rodriguez received a five-year prison sentence. Hill received a four-year sentence for his role. Digital assets forfeited in the case became part of the reserve. Policymakers continue shaping long-term reserve plans. A Senate bill sponsored by Cynthia Lummis aims to accelerate accumulation. The proposal targets one million Bitcoin over five years. Progress now depends on coordination between Treasury and Commerce agencies.