US prosecutors' handling of Bitcoin forfeited by Samourai Wallet developers is drawing scrutiny following conflicting reports about whether the assets were liquidated.
Earlier reporting by Bitcoin Magazine cited court records and blockchain data suggesting the forfeited Bitcoin may have been transferred and potentially sold — a move that would appear to conflict with a White House order requiring forfeited Bitcoin to be held as part of the US Strategic Bitcoin Reserve.
However, the United States Marshals Service (USMS) has since denied that any such sale occurred.
In a statement provided to DL News , the USMS said it "has not sold the Bitcoin mentioned" and stated it has "no idea how Bitcoin Magazine would get that information." The agency added that cryptocurrency liquidations go through a multi-level approval process and that only assets meeting the requirements of Executive Order 14233 are eligible for disposal.
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Samourai Wallet founders plead guilty, forfeit Bitcoin
In August 2025, Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill pleaded guilty in the Southern District of New York to conspiracy to operate an unlicensed money transmitting business.
Prosecutors said the pair ran a crypto mixing service that "facilitated more than $200 million in illegal transactions," including funds tied to darknet markets, cybercrime and fraud.
"The defendants created and operated a cryptocurrency mixing service that they knew enabled criminals to wash millions in dirty money," said acting US attorney Nicolas Roos at the time.
As part of their plea agreements, Rodriguez and Hill agreed to forfeit assets connected to the offense, including Bitcoin worth approximately $6.37 million, or 57.55 BTC, at the time of transfer.
Court filings indicate the Bitcoin was forfeited under 18 U.S. Code 982, which governs criminal forfeiture related to money laundering and unlicensed money transmission offenses.
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Forfeited Bitcoin reportedly transferred to Coinbase Prime
According to an asset liquidation agreement cited by Bitcoin Magazine , the forfeited Bitcoin was transferred on Nov. 3, 2025, to a wallet associated with Coinbase Prime rather than being held directly by the US Marshals Service.
Blockchain tracking firm Arkham Intelligence attributes the destination address to Coinbase Prime, a brokerage service used by institutional and government clients.
The wallet later displayed a zero balance, which Bitcoin Magazine reported could indicate that the Bitcoin was liquidated. Neither the Justice Department nor the US Marshals Service has publicly confirmed whether a sale occurred.
That order, signed by President Trump on March 6, 2025, states that Bitcoin acquired by the government through criminal or civil forfeiture "shall not be sold" and must instead be placed into the Strategic Bitcoin Reserve.
"Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States," the order says.
TheStreet Roundtable reached out to the US Department of Justice and Coinbase for comment. No response had been received at the time of publication.
Potential conflict with Trump's Strategic Bitcoin Reserve order
Executive Order 14233 directs federal agencies to retain forfeited Bitcoin unless specific exceptions apply, such as returning funds to victims or using assets for law enforcement operations.
The order also states that agency heads "shall not sell or otherwise dispose of any Government Digital Assets" unless approved under narrow conditions involving the Treasury secretary or attorney general.
If the Samourai Bitcoin was sold at agency discretion, critics argue it may reflect lingering institutional resistance to treating Bitcoin as a strategic asset.
That concern is amplified by the case's origins under a prior administration that took a more aggressive stance toward privacy-focused crypto tools.
Deputy Attorney General Todd Blanche wrote in an April 2025 memo that the Justice Department "will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users."
Whether the sale violated the executive order has not been formally addressed by federal officials.
President Trump has since said he may consider a pardon for Rodriguez, a move that could further elevate scrutiny of how the case and the forfeited Bitcoin was handled.
Editor's note (Jan. 6, 2026): After publication, the United States Marshals Service told a news outlet that it has not sold the Bitcoin forfeited in the Samourai Wallet case and disputed earlier reporting suggesting the assets were liquidated. This article has been updated to reflect the Marshals Service's statement.
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This story was originally published by TheStreet on Jan 5, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
