Patrick Witt confirmed that approximately 57.55 BTC forfeited by Samourai Wallet will remain on the U.S. government's balance sheet, as per Trump's executive order.
The decision avoids market volatility from liquidation, highlighting Bitcoin's evolving role as a government asset. Financial markets have responded calmly with stable BTC prices.
U.S. Government Retains Seized Bitcoin
The U.S. government confirmed that Bitcoin seized from Samourai Wallet is retained in the Strategic Bitcoin Reserve. Patrick Witt, White House Cryptocurrency Advisor, announced the assets will not be liquidated. This arises from the DOJ's recent confirmation.
Patrick Witt stated on his official X account that the forfeited assets will remain on the U.S. balance sheet. The U.S. Marshals Service also confirmed that the Bitcoin was not sold, in compliance with Executive Order 14233.
Preserving Bitcoin to Prevent Market Shock
The decision to retain Bitcoin in reserves is expected to mitigate any market impact from a potential sale. This preservation aligns with President Trump's mandate, suggesting a strategic shift in how seized digital assets are handled.
The action may influence other jurisdictions on dealing with seized digital assets. Data indicates that holding rather than liquidating reserved Bitcoin may stabilize its value, promoting its classification as a permanent national asset.
Executive Order Reframes Crypto as National Asset
Previously, seized cryptocurrencies were often auctioned quickly. The current strategy deviates, emphasizing long-term reservation. Executive Order 14233 represents this new trend, treating seized Bitcoin akin to gold reserves.
Experts suggest the non-sale policy, if adopted widely, could enhance Bitcoin's image as a stable asset. Historical trends show other countries may mirror this approach, reinforcing Bitcoin's appeal as a secure national reserve.
Patrick Witt, Executive Secretary of the White House Cryptocurrency Advisory Committee, stated, “They will remain on the USG balance sheet as part of the SBR.”