TLDR:
- The Department of Justice allegedly sold $6.3 million in BTC seized from Samourai Wallet, reportedly ignoring a presidential mandate.
- A direct transfer to Coinbase Prime suggests a discretionary liquidation that bypassed standard USMS custody protocols.
- Legal experts point out that this action contradicts the current administration’s policy of not selling seized digital assets.
This Monday, a new scandal is shaking the foundations of Washington’s financial institutions. According to recently obtained documents, the Department of Justice (DOJ) may have breached the mandate for a U.S. Strategic Bitcoin Reserve by liquidating approximately $6.3 million in BTC.
These assets were confiscated from the developers of Samourai Wallet—a privacy-focused application—but their sale has sparked a political storm for allegedly violating Executive Order 14233.
Regulatory Conflicts and Executive Order 14233
Specifically, this order explicitly prohibits the sale of confiscated Bitcoin, except under very specific circumstances that legal analysts claim were not met in this case.
On-chain data reveals that the funds were sent directly to a Coinbase Prime address on November 3, 2025, bypassing the usual custody of the U.S. Marshals Service (USMS). As of today, that address shows a zero balance, confirming the execution of the sale.
This move is viewed by many as an act of defiance by the Southern District of New York (SDNY), which continues to prosecute non-custodial software developers despite 2025 DOJ memos urging otherwise.
While the crypto sector calls for compliance with the U.S. Strategic Bitcoin Reserve, President Donald Trump has shown support for the affected developers and is reportedly considering presidential pardons.
The liquidation of these assets not only calls into question the internal cohesion of the Department of Justice but also tests the administration’s commitment to ending the “war on cryptocurrencies.” For advocates of digital sovereignty, halting these discretionary sales is the first step toward consolidating trust in the nation’s new financial framework.
