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United States authorities have reportedly liquidated approximately $6.3 million in Bitcoin that was forfeited by Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill. Critics argue that this may represent possible defiance by the Southern District of New York (SDNY).
On-chain evidence reveals that the wallet is now empty. Meanwhile, neither the Department of Justice nor the U.S. Marshals Service has commented officially on the matter.
In 2025, the developers of Samourai Wallet pleaded guilty to operating an unlicensed money transmitting business. As part of their plea agreement, they forfeited Bitcoin valued at $6.37 million. Court documents reveal an “Asset Liquidation Agreement” signed by Assistant U.S. Attorney Cecilia Vogel.
The agreement directed the transfer of approximately 57.55 BTC to a Coinbase Prime deposit address on November 3, 2025. However, blockchain analysis indicates that the funds have been moved, resulting in a zero balance, suggesting that the Bitcoin was likely sold. The move stands in opposition to Executive Order 14233, signed on March 6, 2025, which established the Strategic Bitcoin Reserve.
The Order classifies forfeited Bitcoin as “Government BTC,” which agencies must retain as a reserve asset. It also explicitly prohibits sales of the coins, except in narrow cases such as victim restitution, none of which apply in this situation. Legal observers have noted that the transfer bypassed formal reserve protocols, raising questions about compliance.
The Samourai Wallet case has encountered notable compliance issues. For instance, the Southern District of New York prosecuted Rodriguez and Hill despite regulatory guidance to the contrary. In August 2023, FinCEN informed prosecutors that the non-custodial design of Samourai Wallet did not categorize it as a money transmitter.
However, prosecutors withheld this crucial information until April 2025, prompting the defense to claim a Brady violation. Regardless, the case proceeded, resulting in guilty pleas and sentences ranging from 4 to 5 years. In April 2025, Deputy Attorney General Todd Blanche issued a memo that limited the prosecution of non-custodial crypto tools unless willfulness was proven.
Even so, the SDNY kept pursuing the Samourai and related cases. Observers noted that the situation highlighted a clash between institutional independence and new federal rules. In response, cryptocurrency supporters are calling for audits of seized assets and are considering possible pardons.
The post US Government Sells $6.3M Samourai Wallet BTC, Defying Trump’s Strategic Reserve Order appeared first on CoinTab News.
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