DOJ Liquidates 57 Bitcoin in Contradiction to Trump's Executive Order

On November 3, 2025, the U.S. Department of Justice (DOJ) sold 57 Bitcoin that had been forfeited by the developers of Samourai Wallet. This action appears to go against President Donald Trump’s executive order, which prohibits the sale of Bitcoin obtained through criminal or civil asset forfeiture.

Key Takeaways

The DOJ sold 57 Bitcoin despite an executive order against such sales, aiming to maintain a Strategic Bitcoin Reserve.
Executive Order 14233, signed March 6, 2025, mandates that forfeited Bitcoin must not be sold.
This incident marks a second disregard of federal directives by the Southern District of New York related to the Samourai case.
Legal experts suggest that the sale contradicts U.S. laws governing forfeited assets, which typically do not require liquidation.
Questions about the administration's stance on crypto continue as President Trump considers the cases of the individuals involved.

DOJ Sells 57 Bitcoin Despite Trump's Executive Order Requiring Strategic Reserve

Background on the DOJ's Actions

Executive Order 14233, which took effect on March 6, 2025, stipulates that any Bitcoin obtained through forfeiture must be stored rather than sold. The DOJ’s recent liquidation of Bitcoin, valued at around $6.3 million, raises serious questions about compliance with this directive.

Details from an Asset Liquidation Agreement, obtained by Bitcoin Magazine, reveal that the U.S. Marshals Service was instructed to sell this cryptocurrency that the developers, Keonne Rodriguez and William Lonergan Hill, forfeited after their guilty plea.

DOJ Sells 57 Bitcoin - Court Document

Disregarding Federal Guidance

This isn't the first time the Southern District of New York has gone against federal directives in relation to the Samourai case. On April 7, 2025, Deputy Attorney General Todd Blanche announced that the DOJ would stop prosecuting virtual currency exchanges and services that had no direct involvement in illegal activity.

Despite this memo, prosecutors in the Southern District continued to charge Rodriguez, Hill, and Tornado Cash developer Roman Storm, even after being informed by senior FinCEN officials that Samourai Wallet was likely not operating as a money transmitter.

Known as the "Sovereign District of New York," this jurisdiction has a reputation for high conviction rates and strict sentencing, leading to concerns from various lawmakers, including Senator Cynthia Lummis, who expressed apprehension over potentially squandering Bitcoin while other nations are positioning themselves advantageously.

Legal Framework and Presidential Intent

Trump's executive order defined two primary entities:

The Strategic Bitcoin Reserve for forfeited Bitcoin.
The United States Digital Asset Stockpile for other cryptocurrencies.

The order indicates that Bitcoin deposited into the Strategic Bitcoin Reserve cannot be sold and must be preserved as reserve assets for the government’s strategic goals.

Legal interpretations suggest that the forfeited Bitcoin falls under 18 U.S. Code § 982(a)(1), which governs property from unlicensed money transmitting activities. This statute does not mandate the liquidation of such assets, indicating that the sale of Bitcoin from Rodriguez and Hill's case does not align with existing laws or the executive order.

White House crypto adviser Bo Hines emphasized previously that any Bitcoin acquisition strategies should be "budget neutral" and even considered exploring alternative revenue streams for accumulation.

In August, Treasury Secretary Scott Bessent clarified that the strategy does not involve purchasing Bitcoin but rather utilizing forfeited assets to build reserves.

Ongoing Developments in the Crypto Sphere

Rodriguez received a five-year prison sentence on November 6, while Hill was sentenced to four years on November 19 for their roles in operating Samourai Wallet, which allegedly processed over $237 million linked to criminal activities. Both individuals forfeited the $6.3 million earned from their wallet operation.

On December 16, President Trump remarked that he would contemplate a pardon for Rodriguez, responding positively to inquiries during an Oval Office event.

This conflicting liquidation of Bitcoin raises doubts about the administration's commitment to treating Bitcoin as a strategic asset, which has implications for both market perception and legal standards in the cryptocurrency landscape. Patrick Witt, Executive Director of the White House President’s Council of Advisors for Digital Assets, remarked on X that the council is actively reviewing this issue.