Did the US Department of Justice illegally sell confiscated Bitcoin? The Samora wallet case sparks controversy.
TL;DR
On November 3, 2025, the U.S. Department of Justice liquidated 57.55 BTC (approximately $6.3 million) through Coinbase Prime. This Bitcoin originated from a criminal forfeiture by the developers of Samourai Wallet. This move is alleged to violate Executive Order 14233, signed by President Trump on March 6, 2025—which explicitly requires that criminally forfeited Bitcoin be added to strategic reserves rather than sold. The U.S. Attorney's Office for the Southern District of New York continues to pursue the case, although the Department of Justice issued a memorandum in April 2025 requesting a halt to prosecutions against the non-custodial crypto service. The U.S. government still holds approximately 198,000–328,000 BTC, with major holdings (such as Silk Road's 69,370 BTC) remaining untouched, and on-chain data does not indicate a large-scale sell-off.
Core Analysis
Details of the sale of the Samora wallet case
Sale size and timing :
- Liquidation amount : 57.55 BTC (approximately US$6.3 million)
- Effective Date : November 3, 2025
- Clearing channel : Coinbase Prime (US Marshals Service partner)
- Source of assets : Forfeiture of assets in a criminal plea agreement between Samourai Wallet founders Keonne Rodriguez and William Hill.
On-chain evidence confirms that a direct transfer from address bc1q4pntkz06z7xxvdcers09cyjqz5gf8ut4pua22r to Coinbase Prime address 3Lz5ULL7nG7vv6nwc8kNnbjDmSnawKS3n8 has resulted in the receiving address having zero balance, confirming that the asset liquidation has been completed. x.com
Trump Executive Order: Strategic Bitcoin Reserve
Core content of Executive Order 14233 (signed on March 6, 2025):
| Policy Highlights | Specific provisions | Execution time limit |
|---|---|---|
| Strategic Reserves Establishment | Holding government-confiscated Bitcoin as a reserve asset is analogous to "digital gold." | Effective immediately |
| Prohibited from sale | Except by express court order or special approval from the Treasury/Attorney General, confiscated BTC may not be sold. | Effective upon signing |
| Asset review | Each institution is required to review and transfer its BTC holdings to the strategic reserves managed by the Treasury Department. | Complete within 30 days |
| Historical losses | The executive order states that "premature sales have resulted in $17 billion in losses" and aims to correct previous policies. | - |
This order aims to fulfill Trump's campaign promise to position the United States as "crypto capital" and centrally manage government-held Bitcoin as a national strategic asset. (x.com)
Potential policy conflicts
Analysis of allegations of disobeying orders :
Based on legal analysis and social media discussions, the liquidation of the Samora case raises the following issues:
- Nature of criminal confiscation : This case involves confiscation based on a criminal plea agreement, and according to EO 14233, it should be included in the strategic reserve.
- No exceptions apply : This case does not fall under the category of "a court-ordered sale" or require special approval from the Treasury/Attorney General.
- Chronological order : The liquidation occurred 8 months after the signing of EO 14233, by which time the policy should have been fully implemented.
Institutional independence issues :
The actions of the U.S. Attorney's Office for the Southern District of New York (SDNY) in the Samora case have been criticized for demonstrating multiple disconnects from federal policy: x.com
- In April 2025, the Deputy Attorney General issued a memorandum demanding a halt to prosecutions against non-custodial encryption services.
- SDNY continues to push forward with the Samora case, without following the guidance.
- The case originated during the previous administration, with SDNY accused of maintaining "hostility toward privacy tools."
On-chain data analysis
Current Status of Government Bitcoin Holdings
| Source of assets | Quantity (BTC) | Current status | Latest Activities |
|---|---|---|---|
| Silk Road "Individual X" | 69,370.184 | Unmoved | Only a small amount of dust was transferred in (as of January 4, 2026). |
| Bitfinex hacking case | 94,643+ | Unmoved | No large outflow reports |
| Other confiscated assets | Approximately 34,000-164,000 | Partial Hosting | On December 2, 2024, 19,800 BTC were transferred to Coinbase Prime custody. |
| Total estimate | 198,000-328,000 | Hold steadily | No evidence of large-scale sell-off |
Important on-chain transaction records
Large transfer on December 2, 2024 (not for sale) :
- Amount : 19,800 BTC (approximately $1.92 billion USD, then valued at around $97,000)
- Source : Silk Road DOJ confiscated wallet (
bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm) - Destination : Coinbase Prime Custody Address
- Nature : Asset custody transfer, not liquidation (The U.S. Marshals Service and Coinbase established a custody partnership in July 2024)
- Transaction hash :
876b851b4b3ec4f43d53e9b71302260090622a7c91ca719596dcad5f140e76c0
Market impact verification : The price of Bitcoin rose from $88,415 to $93,927 between December 31, 2025 and January 6, 2026, without a price collapse caused by a large sell-off, further confirming that the government did not carry out a large-scale liquidation.
Current status of the court-approved sale of 69,370 BTC
Approval details :
- Approval Date : December 30, 2024
- Amount involved : 69,370 BTC (valued at approximately $6.5 billion at the time)
- Case Background : Ending the legal dispute with Battle Born Investments
- Execution status : Not executed as of January 6, 2026; wallet balance remains unchanged.
This means that although the court has authorized the sale, the government may suspend enforcement due to EO 14233, or is assessing how it can comply with strategic reserve policy.
Social sentiment analysis
Twitter/X platform discussion topics
| Main narrative | Representative viewpoints | Mood Tendency |
|---|---|---|
| Policy violation allegations | The liquidation of the Samora case violated EO 14233, and the SDNY "disregarded" the presidential order. | Critical (for DOJ/SDNY) |
| Institutional independence | SDNY continues its anti-crypto policies as a "remnant" of the former government. | Skepticism (regarding policy implementation) |
| Trump pardon expectations | Trump considers pardoning Samora developers, reflecting his pro-crypto stance. | Positive attitude (towards crypto-friendly policies) |
| Strategic reserve value | EO 14233 is a strategic move to position the United States as a leader in Bitcoin. | Optimism (long-term policy) |
Key opinion leader perspectives :
Accounts such as @BitcoinArchive and @AltcoinDaily characterized the incident as "DOJ's contempt for Trump's Bitcoin Reserve Directive," linking to related reports and court record analyses. x.com
@frankcorva highlighted SDNY's "repeated contempt" in the Samora case, including ignoring federal guidance on non-custodial instruments.
Reddit and other platforms provide supplementary perspectives
Discussions in October 2025 showed that users were optimistic about establishing reserves through asset confiscation, believing that this would avoid taxpayer costs, but also expressed concerns about government enforcement and the continuity of future policies (such as the possibility that regime change could lead to the sale of reserves).
Overall emotional characteristics
- Skeptical of DOJ/SDNY's actions : believing the organization continues the previous government's anti-privacy and anti-encryption stance.
- Recognition of the strategic value of EO 14233 : Viewed as a positive signal for the US's struggle for crypto leadership.
- Questionable Implementation : Concerns remain regarding whether policies can be effectively implemented and issues of inter-agency coordination.
- No speculative frenzy : The discussion focuses on policy conflicts and accountability, rather than market speculation.
in conclusion
The U.S. Attorney's Office for the Southern District of New York's liquidation of 57.55 BTC through Coinbase Prime in November 2025 does indeed raise questions about a conflict with Trump's Executive Order 14233. This order explicitly requires that criminally seized Bitcoin be held as strategic reserve assets, not sold. The liquidation in the Samora case lacked both a court order for sale and specific approval from the Treasury Department or the Attorney General, constituting a potential policy violation.
However, this is a relatively small case ($6.3 million) and not evidence of a systemic violation of reserve policy. The government's main Bitcoin holdings (approximately 200,000-300,000 BTC) remain stable, and on-chain data does not indicate a large-scale sell-off. The court-approved sale of 69,370 BTC ($6.5 billion) on December 30, 2024, has not yet been executed, which may reflect the constraints of EO 14233.
This incident highlights the challenges of policy coordination among federal agencies, particularly the tension between the independence of district attorneys' offices and federal executive orders. The Southern District of New York Attorney's Office's stance on this case and crypto regulation is clearly divergent from the Trump administration's pro-crypto policies. Future developments to watch include: 1) whether accountability will be pursued for the liquidation; 2) whether Trump will honor his pardon for the Samora developers; and 3) the long-term effectiveness of the strategic Bitcoin reserve policy.