U.S. Bitcoin Reserve Faces Scrutiny After Reports of Government Sales

Source: CryptoTale Original Title: U.S. Bitcoin Reserve Faces Scrutiny After Reports of Government Sales Original Link: Questions are mounting over the handling of seized Bitcoin by U.S. authorities after reports suggested that federal agencies may have liquidated assets meant for long-term retention. The issue has drawn political attention, revived debates over compliance with executive policy, and raised concerns about the integrity of the U.S. Bitcoin Reserve.

Congressional Scrutiny Grows Over Reported Bitcoin Sale

The controversy gained momentum after Senator Cynthia Lummis publicly challenged why the federal government would continue selling Bitcoin despite its standing policy. In a statement, Lummis questioned why assets earmarked for strategic preservation were allegedly liquidated while other nations continue to accumulate Bitcoin.

Her comments followed reporting that the U.S. Marshals Service sold approximately $6.3 million worth of Bitcoin connected to the Samourai Wallet case. The funds were forfeited by developers Keonne Rodriguez and William Lonergan Hill as part of a guilty plea agreement with the Department of Justice.

At the center of the dispute is whether this sale conflicted with federal policy governing the U.S. Bitcoin Reserve, a framework designed to prevent the rapid disposal of seized digital assets.

Tracing the Funds: How the Seized Bitcoin Moved

According to an “Asset Liquidation Agreement”, the defendants agreed to forfeit $6,367,139.69 worth of Bitcoin. At the time of signing on November 3, 2025, the amount equaled 57.55353033 BTC. The agreement was finalized by Assistant U.S. Attorney Cecilia Vogel.

Blockchain data shows that Bitcoin was sent from a SegWit address to a wallet identified by Arkham Intelligence as belonging to a major exchange’s custody service. The address later showed a zero balance, suggesting the Bitcoin had already been sold.

Executive Order 14233 and Its Mandate

Executive Order 14233, signed by Donald Trump, laid out a clear framework for how seized Bitcoin should be treated. The order mandates that Bitcoin acquired through criminal or civil forfeiture be deposited into a Treasury-managed reserve rather than sold on the open market.

The rationale behind the policy was practical, not symbolic. The order emphasized preserving value by holding Bitcoin as a reserve asset, limiting market disruption from sudden government sales, and ensuring the United States maintained a foothold in digital asset infrastructure.

Per the report, immediate liquidation was only permitted under narrowly defined national emergency conditions. Thus, if the Samourai-related Bitcoin was sold, it would appear to conflict with the operational rules governing the U.S. Bitcoin Reserve, regardless of the relatively modest dollar amount involved.

SDNY’s Independent Streak Returns to the Spotlight

The case was prosecuted in the Southern District of New York, a jurisdiction known for its outsized role in financial and technology-related enforcement. Critics argue that the district has, at times, moved ahead of broader federal policy signals.

That perception has been reinforced by other cases involving noncustodial crypto developers, even after Deputy Attorney General Todd Blanche issued guidance in April 2025 stating the DOJ would no longer target developers for how end users deploy their software.

The reported Bitcoin sale has therefore become more than an accounting question. It has reopened debate over whether federal agencies and prosecutors are aligned on how the U.S. Bitcoin Reserve is supposed to function. For lawmakers and industry observers alike, the concern is consistency.

At stake is not just a single transaction, but confidence in how the United States manages seized digital assets. As scrutiny grows, the handling of this case may shape future expectations around transparency, custody, and the credibility of the U.S. Bitcoin Reserve itself.