- Bitcoin (BTC) connected to the Samourai Wallet case could have been sold even though a federal order was in place to prevent the sale.
- Purported sale adds to the uncertainty surrounding the adherence to the Executive Order 14233.
- Incident raises the question whether the United States’ battle against Bitcoin has really come to an end.
The developers of the Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, forfeited $6.3 MM worth of Bitcoin as part of their guilty plea with the U.S. Department of Justice, this was equivalent to 57.55 BTC at the time. Since then, there has been an increasing amount of quiet, but serious tensions within the capital.
According to the documentation associated with the case, the BTC was moved away from the direct custody of the U.S. Marshals Service (USMS) and transferred to a Coinbase Prime address where it currently shows a zero balance indicating it may already be gone.
If the transfer did occur, it would contradict the Executive Order 14233. The Executive Order states that BTC seized through Criminal/Civil Forfeiture cannot be sold; therefore, the BTC seized must remain within the Strategic BTC Reserve of the United States. The language is clear: “Government BTC shall not be sold”.
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Bitcoin and Question of Executive Authority
With the passing of EO 14233, Bitcoin is no longer seen simply as an asset synonymous with seizure; it is now considered a strategic national asset.
Under EO 14233, forfeited BTC is referred to as Government BTC and falls under the broader category of Government Digital Assets. The heads of agencies that oversee these assets cannot sell them unless meeting one of the limited exceptions defined by the order. It does not appear that any of the exceptions described in the order would apply to the Samourai case specifically. In every one of those exceptions, the Attorney General must have been involved.
The legal authority cited in the narrative calling for forfeiture of BTC does not authorise that such BTC must legally be sold. It describes how the Government takes ownership of forfeited BTC, while not requiring that any such BTC is sold (i.e., all instances of BTC sales). The order indicates that the proceeds from the sale of BTC will be sent to a specified account, while at the same time holding BTC “in kind” is permitted.
If the Bitcoin was sold in any case where such BTC was foreclosed to the sale of BTC anyway, then the conclusion that those decisions were made at the discretion of an agency head rather than in accordance with existing law implies that there is still a greater issue at play. Using some of the aspects of the Government’s systems, they may still perceive that BTC is considered dangerous, a product to be liquidated quickly.
Bitcoin, SDNY, and an Old Pattern
The story of how Bitcoin made it through the Southern District of New York (SDNY) is a story told many times before. The SDNY has built a strong reputation for being in charge of its own jurisdiction; the SDNY is often referred to as “The Sovereign District of New York.” The Samourai prosecution fits right into that reputation. The ongoing prosecution of Roman Storm, one of the creators of Tornado Cash, also fits within that paradigm.
The SDNY continues to push forward with prosecutions of companies targeted for being noncustodial, despite an internal memorandum created by Deputy Attorney General Todd Blanche in 2025 indicating that the U.S. Department of Justice would cease prosecuting noncustodial tools based on the actions of their users. Even after statements from FinCEN officials indicating that Samourai was not acting as a money transmitter, the SDNY continued with this prosecution.
Currently, given that there have been reports of the sale of bitcoin supposedly contravening executive orders, there is a lack of confidence in this process.
There were those Bitcoin supporters who supported then-President Trump thinking that the war on cryptocurrencies was over; now, many are uncertain about that. A pardon for Rodriguez or a complete inquiry into the sale of BTC would send a clear message.
Many Bitcoin watchers are attentive to signals from the market, as are the holders of BTC.
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