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Highlights:
U.S. Senator Cynthia Lummis, a strong Bitcoin supporter and co-sponsor of the BITCOIN Act, raised concerns after the U.S. Department of Justice (DOJ) reportedly sold 57.55 BTC worth $6.3 million. These coins were seized from Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill after their plea deal.
Lummis stressed the need to keep seized Bitcoin for national reserves. She said, “We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report.”
Why is the U.S. gov still liquidating bitcoin when @POTUS explicitly directed these assets be preserved for our Strategic Bitcoin Reserve? We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report. https://t.co/XW5WxsfliA
— Senator Cynthia Lummis (@SenLummis) January 6, 2026
Arkham data reveals that on November 3, Keonne Rodriguez and William Lonergan Hill sent $6.36 million in Bitcoin to the USMS wallet 3Lz5U. It appears that Bitcoin from address bc1q4 did not stay under direct USMS control.
From there, the funds moved to a wallet marked Coinbase Prime Deposit (1AaFQ). Arkham Intel identifies this as a brokerage address, showing someone likely prepared the Bitcoin for sale. The address now shows a zero balance, meaning authorities likely already sold the seized Bitcoin.
This sale may break President Donald Trump’s Executive Order 14233. The order says Bitcoin seized from crimes, called “Government BTC,” should not be sold. Instead, it should go into the U.S. Strategic Bitcoin Reserve. Analysts say the U.S. Marshals Service could sell it, but it is not legally required. The sale goes against executive branch rules. It shows some in the Department of Justice still see Bitcoin as risky, not a strategic asset. Experts note this is similar to past actions, where governments often removed crypto from their control.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, confirmed that the Trump administration is reviewing possible violations of the executive order. The review aims to find out if the Department of Justice has allowed Bitcoin sales in other cases, too.
We are looking into this. https://t.co/qDcvC3bTML
— Patrick Witt (@patrickjwitt) January 6, 2026
On April 7, Deputy Attorney General Todd Blanche issued a memo called “Ending Regulation By Prosecution.” It told the DOJ not to target crypto exchanges, mixing services, or offline wallets for what their users do. Even with this memo, the Southern District of New York (SDNY) continued the Samourai Wallet case and the Tornado Cash prosecution. The case went on even after the defense showed that senior Treasury officials said Samourai Wallet was not acting as a money transmitter.
Court records show that judges convict over 90% of defendants, and SDNY convicts an even higher number. Keonne Rodriguez knew these stats and the strict reputation of Judge Denise Cote when he pleaded guilty. These actions are making Bitcoin and crypto supporters question if Trump really wants to end the “war on crypto.”
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