The US Department of Justice (DOJ) is facing heavy criticism following allegations of liquidating 57.55 Bitcoin, worth approximately $6.3 million at the time, seized from the Samourai Wallet co-founders. The controversial sale has been described as a potential violation of Executive Order 14233, an effort by the US government, under President Donald Trump, to secure Bitcoin within a Strategic Bitcoin Reserve.
Understanding the Bitcoin Controversy
According to reports from Bitcoin Magazine, the DOJ utilized the US Marshals Service to quietly transfer Bitcoin from a wallet linked to the Samourai Wallet founders to Coinbase Prime, a move that sparked debates across the cryptocurrency community. Blockchain data reveals transfers from the initial Bech32 address to wallets within Coinbase’s brokerage cluster, raising suspicions that the funds might have been liquidated.
However, some argue that this transfer does not conclusively confirm a sale, as Coinbase Prime’s platform often engages in internal address management for operational purposes.
The Role of Executive Order 14233
Executive Order 14233, enacted in March 2025 by President Trump, strictly prohibits the liquidation of seized Bitcoin assets. Instead, the order mandates the use of these assets within the Strategic Bitcoin Reserve to bolster the country’s digital currency strategy. The alleged sale defies the intent to stockpile strategic cryptocurrency assets while other nations, such as El Salvador, accelerate Bitcoin adoption at a national level.
Political and Industry Reactions
Prominent Bitcoin advocate, Senator Cynthia Lummis, criticized the maneuver, highlighting the country’s need to preserve and leverage its Bitcoin reserves amidst increasing global adoption of cryptocurrencies. In a statement on X (formerly Twitter), she expressed concern over the potential mishandling of strategic assets.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, has confirmed an ongoing investigation into the incident. Legal experts and industry leaders emphasize the need for clarity, as past government seizures, such as the Silk Road Bitcoin auctions, were managed transparently, setting a contrasting precedent.
What This Means for the Cryptocurrency Ecosystem
If the reports are accurate, this incident could undermine public trust in government handling of digital assets. Critics argue that a lack of transparency risks alienating industry stakeholders and investors.
Regardless of whether the DOJ’s actions constitute illegal liquidation or custody maneuvers, the case reinforces the importance of secure, transparent management of crypto assets by both public and private entities.
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