U.S. Marshals Bitcoin Sale Raises Questions Over Trump Executive Order

TLDR

• USMS sold 57.55 BTC despite Executive Order 14233 banning such sales
• Bitcoin from Samourai case was transferred to Coinbase Prime and liquidated
• Trump’s order mandates government-held Bitcoin be added to federal reserves
• DOJ memo barred prosecution of noncustodial devs before Samourai case

On November 3, 2025, the U.S. Marshals Service transferred and sold 57.55 Bitcoin, valued at over $6.3 million, through Coinbase Prime. These assets were forfeited by Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill, who pled guilty to conspiracy to operate an unlicensed money transmitting business.

The transfer of Bitcoin was confirmed on-chain from address bc1q4pntkz06z7xxvdcers09cyjqz5gf8ut4pua22r to Coinbase Prime address 3Lz5ULL7nG7vv6nwc8kNnbjDmSnawKS3n8, which now shows a zero balance. This sale appears to violate Executive Order 14233, signed by President Donald Trump, which states that digital assets obtained via criminal forfeiture must be held in the U.S. Strategic Bitcoin Reserve.

Trump’s Executive Order Prohibits Sale of Forfeited Bitcoin

Executive Order 14233 defines Bitcoin acquired through criminal or civil forfeiture as “Government BTC.” It explicitly prohibits the sale or disposal of such assets unless certain exceptions apply. These exceptions are not believed to be relevant in the Samourai Wallet case.

Court documents confirm that the 57.55353033 BTC transferred by Rodriguez and Hill was part of a plea deal with the DOJ. However, the executive order, which took effect before the sale, requires that such digital assets be preserved as strategic reserves, not sold on the open market.

Legal analysts note that statutes such as 18 U.S. Code § 982(a)(1) and 31 U.S.C. § 9705 do not require seized cryptocurrencies to be converted into fiat currency. They only guide how funds can be deposited and used.

DOJ Memo Directed End to Certain Crypto Prosecutions

Another legal concern involves the continuation of the Samourai case despite a policy shift in April 2025. Deputy Attorney General Todd Blanche issued a memorandum titled “Ending Regulation By Prosecution,” which directed federal agencies to stop prosecuting developers of noncustodial crypto services, such as wallets and mixers.

Nevertheless, the Southern District of New York proceeded with the case against Samourai Wallet, as well as the ongoing prosecution of Tornado Cash developer Roman Storm. Defense attorneys in the Samourai case discovered via a Brady disclosure that officials from the Treasury Department’s Financial Crimes Enforcement Network believed Samourai Wallet was not functioning as a money transmitter.

This revelation raises questions about why the prosecution continued in light of the DOJ directive. “We had reason to believe we were in compliance with federal law,” Rodriguez reportedly said after his guilty plea. He added that the reputation of SDNY’s high conviction rate influenced his decision to avoid trial.

U.S. Marshals’ Actions Draw Political and Industry Attention

The decision by the Marshals Service to sell government-held Bitcoin has attracted attention from both lawmakers and crypto industry leaders. Many who backed President Trump in his 2024 campaign are now questioning the administration’s crypto policy enforcement.

Market analysts warned that discretionary sales like this may affect the stability of the Bitcoin market and undermine the idea of a national reserve. With no public comment from the DOJ or USMS, concerns remain about compliance and internal oversight.

No exemption to Executive Order 14233 has yet been made public regarding the Samourai Bitcoin sale. The silence from agencies has left policy observers waiting for clarification as pressure mounts.

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