US Government Has Not Sold Forfeited Samourai Bitcoin, Clarifies White House Crypto Advisor

A White House crypto advisor recently stated that the United States government has not sold any Bitcoin that was forfeited in the Samourai Wallet case. This clarification comes amidst market speculation driven by recent blockchain activities.

Key Takeaways:

The Department of Justice (DOJ) confirmed that it has not sold any Bitcoin forfeited in the Samourai Wallet case.
This statement follows discussions about a transfer of 57.5 BTC that led to rumors of sales.
The seized Bitcoin will continue to be part of the US Strategic Bitcoin Reserve as ongoing accumulation efforts proceed.

Patrick Witt, the executive director of the White House President’s Council of Advisors for Digital Assets, mentioned that he received direct confirmation from the DOJ, stating that these assets have not been sold and are not planned to be sold. "We have received confirmation from DOJ that the digital assets forfeited by Samourai Wallet have not been liquidated and will not be liquidated," Witt shared on X this past Friday, noting that these Bitcoins will remain within the Strategic Bitcoin Reserve.

DOJ Did Not Sell Forfeited Samourai Bitcoin, White House Crypto Advisor Says

The 57.5 BTC Transfer Raises Eyebrows

Concerns about potential sales surfaced in November when blockchain analysts noticed a transfer of 57.5 BTC from a wallet controlled by the government to a Coinbase Prime deposit address. This transaction led to speculation that US authorities might have liquidated or were considering selling the funds. Market participants pointed to Executive Order 14233, signed by then-President Donald Trump in March, which mandates that any Bitcoin obtained through criminal or civil forfeiture “shall not be sold” and instead should be kept for the Strategic Bitcoin Reserve.

Some critics accused the US Marshals Service of not adhering to this directive, but these accusations have been denied following the DOJ's clarification.

According to public data, the US government continues to be one of the largest holders of Bitcoin globally. Data from Bitcoin Treasuries indicates that federal authorities currently hold 328,372 BTC, estimated to be worth over $31 billion at today's prices. This total includes 127,271 BTC forfeited in October from a Cambodia-based entity accused of operating a so-called pig-butchering investment scam.

Witt emphasized the importance of expanding the Strategic Bitcoin Reserve as part of ongoing policy efforts. During a recent interview, he mentioned that progress in this area is contingent on cooperation between the Treasury and Commerce departments to resolve existing legal and operational hurdles. Additionally, legislative efforts are in motion, including a proposal by Cynthia Lummis aimed at accelerating reserve accumulation, with a goal of obtaining up to 1 million Bitcoin over five years. This initiative stresses budget-neutral strategies, with officials affirming that any accumulation would not incur costs to taxpayers.

Trump Hints at a Potential Pardon for Samourai Wallet Developer

In November, two developers associated with Samourai Wallet were sentenced to prison after prosecutors reported that the privacy-centric Bitcoin wallet facilitated transactions involving over $237 million in criminal profits. Keonne Rodriguez received a five-year sentence on November 6, while his co-developer Hill was sentenced to four years on November 19. Both were also mandated to forfeit around $6.3 million in fees generated through the platform.

The situation shifted politically in December when Donald Trump indicated he would contemplate a pardon for Rodriguez. During a press event at the Oval Office on December 16, Trump remarked that he had “heard about it” and had instructed Attorney General Pam Bondi to examine the case. Rodriguez responded positively to these comments, stating on social media that the prosecution represented “lawfare” and an unconstitutionally weaponized Justice Department under the Biden administration.

Trump has previously granted pardons to individuals such as Ross Ulbricht and Changpeng Zhao in related cryptocurrency matters, leading to increased anticipation for a similar pardon for Rodriguez.