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Did DOJ Prosecutors Violate Trump’s Executive Order by Selling the Forfeited Samourai Wallet Bitcoin?

Bitcoin Magazine
The USMS may have violated Trump's Executive Order 14233 by selling $6.3 million in forfeited Samourai Wallet bitcoin instead of adding it to the Strategic Bitcoin Reserve.

Summary

The U.S. Marshall Service (USMS) appears to have sold approximately $6.3 million in bitcoin forfeited by Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill following their guilty plea. This action potentially violates Executive Order (EO) 14233, signed by President Trump, which mandates that bitcoin acquired through criminal forfeiture be held as part of the United States’ Strategy Bitcoin Reserve (SBR) and not sold.

The forfeited bitcoin, totaling 57.55353033 BTC, was transferred to a Coinbase Prime address, which now shows a zero balance, suggesting it was liquidated. Legal analysis indicates that the forfeiture falls under the definition of “Government BTC” as per the EO, and the relevant statutes do not require liquidation. The decision to sell suggests some DOJ members view bitcoin as an asset to be offloaded, contrasting with the EO's directive to retain it.

This alleged violation is framed within a pattern where the Southern District of New York (SDNY) has acted unilaterally, seemingly disregarding recent DOJ guidance aimed at ending "Regulation By Prosecution" of noncustodial crypto tools. The article concludes by noting that President Trump is considering a pardon for Rodriguez, and honoring EO 14233 by investigating the sale would signal seriousness regarding his pro-crypto stance.

(Source:Bitcoin Magazine)