U.S. Government Confirms No Sale of Bitcoin Seized from Samourai Wallet

The U.S. government has officially stated that it did not sell the Bitcoin seized from Samourai Wallet. This announcement is a response to earlier allegations claiming that these assets had been liquidated contrary to federal policy concerning forfeited digital assets.

Key Takeaways

The U.S. government confirms that no Bitcoin seized from Samourai Wallet has been sold.
The Department of Justice (DOJ) reiterates that these assets are part of the Strategic Bitcoin Reserve.
Claims suggesting that Bitcoin was liquidated after a plea agreement associated with Samourai have been refuted.
Independent blockchain data supports the DOJ's assertion, showing stable Bitcoin holdings without notable sales.
The confusion surrounding this situation stems from past practices of selling seized Bitcoin, while new policies aim to retain these assets.

U.S. government confirms it did not sell Bitcoin seized from Samourai Wallet

Recent reports indicated potential violations regarding the sale of Bitcoin connected to Samourai Wallet, but the U.S. Department of Justice has clarified its position. The assets are retained as part of the Strategic Bitcoin Reserve, affirming compliance with Executive Order 14233.

U.S. DOJ Clarification on Liquidation Claims

Patrick Witt, the Executive Director of the President’s Council of Advisors for Digital Assets, confirmed that the Department of Justice (DOJ) has announced that the seized Bitcoin “have not been liquidated and will not be liquidated”. He pointed out that these assets will stay on the U.S. government's balance sheet as part of the Strategic Bitcoin Reserve.

This announcement follows earlier reports suggesting that prosecutors in the Southern District of New York (SDNY) had sold Bitcoin that was forfeited by individuals associated with Samourai Wallet. Such a transaction would contradict Executive Order 14233, which mandates that forfeited Bitcoin must be retained rather than sold.

According to Witt, the DOJ affirmed that the confiscated digital assets are still in the possession of the U.S. government and comply with the executive order. This declaration directly counters claims that liquidation had occurred following the Samourai plea agreement. The DOJ has not elaborated on how these assets will be managed operationally but has confirmed that they remain on the government's balance sheet. This confirmation alleviates doubts regarding whether the seized assets contributed to recent fluctuations in Bitcoin prices.

On-Chain Data Supports U.S. Government Statement

Independent blockchain data from Arkham corroborates the stance of the U.S. DOJ. Publicly monitored wallets linked to U.S. government holdings have shown no significant decline in Bitcoin balances that would be expected from sales related to the Samourai case.

U.S government Bitcoin and crypto holding

According to on-chain analytics as of mid-January, the U.S. government maintains a holding of over 328,000 BTC, valued at more than $31 billion, alongside smaller amounts of Ethereum and stablecoins. There have been no abnormal outflows linked to the Samourai forfeiture.

Reasons for the Confusion

Historically, the U.S. government has a precedent of selling seized Bitcoin through public auctions, particularly notable in cases like Silk Road. This history has shaped market expectations and led many to believe that recently forfeited Bitcoin would likewise be liquidated.

However, Executive Order 14233 signifies a shift in policy that requires some seized Bitcoin to be held as strategic assets instead of being sold. The situation with Samourai Wallet appears to fall within this new directive, marking a significant change from the previous practices regarding asset forfeiture.

As it stands now, the DOJ’s clarification resolves the question of whether Bitcoin associated with Samourai entered the market.

Final Thoughts

In conclusion, the U.S. government's reaffirmation regarding the seized Bitcoin from Samourai Wallet helps clarify any misunderstandings surrounding the liquidation of these digital assets. With ongoing regulatory developments, it is critical for investors and crypto enthusiasts alike to stay informed about how government policies affect the cryptocurrency landscape.