Executive Summary
- The U.S. Marshals Service reportedly sold $6.3 million in Bitcoin forfeited by Samourai Wallet developers.
- The sale appears to violate Executive Order 14233, which mandates forfeitures be added to a Strategic Bitcoin Reserve.
- SDNY prosecutors proceeded with the case despite a DOJ memo discouraging actions against noncustodial crypto developers.
- Blockchain data shows the forfeited funds were moved to a Coinbase Prime address and subsequently liquidated.
The U.S. Marshals Service (USMS) has reportedly liquidated approximately $6.3 million in Bitcoin forfeited in connection with the Samourai Wallet case, a move that appears to contravene a recent presidential directive establishing a Strategic Bitcoin Reserve. Blockchain analysis and asset liquidation agreements suggest the agency sold the digital assets rather than holding them as mandated by the administration.
According to documents obtained by Bitcoin Magazine, Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill agreed to transfer 57.55353033 Bitcoin to the USMS as part of a plea agreement with the U.S. Department of Justice. Blockchain records indicate these funds were transferred on November 3, 2025, to a Coinbase Prime address, which currently reflects a zero balance, implying the assets were sold.
This liquidation reportedly conflicts with Executive Order 14233, signed by President Trump, which designates such forfeited assets as "Government BTC." The order explicitly instructs agency heads to contribute these assets to the United States Strategic Bitcoin Reserve and prohibits their sale or disposal, barring specific exceptions that do not appear to apply to the Rodriguez and Hill cases.
The continued prosecution and subsequent asset forfeiture by the Southern District of New York (SDNY) reportedly proceeded despite a Department of Justice memorandum issued on April 7, 2025, by Deputy Attorney General Todd Blanche. The memo, titled "Ending Regulation By Prosecution," sought to curb enforcement actions against noncustodial virtual currency developers and wallet services.
Executive and Regulatory Friction
The apparent disconnect between the actions of the USMS and the directives from the White House highlights a significant fragmentation in federal cryptocurrency policy. If confirmed, the liquidation of these assets challenges the operational enforceability of Executive Order 14233 and raises questions regarding the cohesion between the Department of Justice’s field offices and the administration’s strategic financial goals. Furthermore, the prosecution of noncustodial developers amidst conflicting internal guidance suggests that judicial interpretations of money transmission laws remain unsettled. It is important to note that all individuals named in related investigations are presumed innocent until proven guilty in a court of law.
