The U.S. Marshals Service (USMS) has reportedly come under scrutiny from the administration of President Donald Trump after allegedly selling Bitcoin seized from the developers of Samourai Wallet, with the total value estimated at approximately $6.3 million.
The move is controversial because it appears to conflict with an active presidential executive order stating that Bitcoin acquired through criminal or civil asset forfeiture should not be sold, but instead transferred into the United States Strategic Bitcoin Reserve.
Were Government Bitcoins Actually Sold?
According to an asset liquidation agreement obtained by Bitcoin Magazine, Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill agreed to transfer 57.55353033 BTC to the USMS as part of a plea deal with the U.S. Department of Justice.
Blockchain data indicates that on November 3, 2025, these Bitcoins were transferred from a private wallet to a Coinbase Prime address—commonly used for institutional custody and asset sales. That address currently shows a zero balance, fueling speculation that the Bitcoin was subsequently liquidated.
If confirmed, such a sale would directly contradict Executive Order 14233, which explicitly classifies confiscated digital assets as “Government BTC” and states that federal agencies may not sell or otherwise dispose of them. The order allows for limited exceptions, but none are known to apply to the Rodriguez and Hill case.
Federal Law Does Not Require Bitcoin to Be Sold
Legal experts have emphasized that existing U.S. forfeiture laws do not require seized Bitcoin to be converted into cash. While 18 U.S.C. § 982(a)(1) mandates forfeiture of property connected to operating an unlicensed money transmission business, it does not specify liquidation.
Other statutes governing forfeiture proceeds merely determine where funds are deposited and how they may be used, not that digital assets must be sold upon seizure.
Did the Southern District of New York Ignore DOJ Guidance?
Additional controversy surrounds the actions of the Southern District of New York. Despite updated guidance from the Department of Justice, prosecutors continued pursuing the Samourai Wallet case throughout 2025.
On April 7, 2025, Deputy Attorney General Todd Blanche issued a memo titled “Ending Regulation by Prosecution,” which instructs federal prosecutors not to target crypto exchanges, mixers, tumblers, or offline wallets for the actions of their users.
Nevertheless, SDNY prosecutors moved forward with the Samourai Wallet case and continued pursuing charges against Tornado Cash developer Roman Storm. During discovery, defense attorneys reportedly learned—via a Brady request—that two senior officials at Financial Crimes Enforcement Network (FinCEN) had “strongly suggested” that Samourai Wallet did not function as a money transmitter.
Why Did the Defendants Accept a Plea Deal?
Federal court statistics show that over 90% of criminal defendants are ultimately convicted, while acquittal rates have fallen as low as 0.4% in some years. The Southern District of New York is widely regarded as having an even higher-than-average conviction rate.
Rodriguez reportedly told journalists that he was well aware of these odds, as well as the reputation of Judge Denise Cote—who presided over his case—for imposing harsh sentences. These factors, he said, heavily influenced his decision to plead guilty to conspiracy to operate an unlicensed money transmitting business.
Crypto Industry Questions Trump’s “End of the War on Crypto”
The case has reignited debate within the crypto industry, particularly among leaders who supported Trump’s 2024 reelection campaign. Many are now questioning whether the administration’s promise to end the so-called “war on crypto” is being meaningfully implemented—or whether some federal agencies continue to act under a more aggressive, pre-reform enforcement approach.
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