U.S. Faces Scrutiny Over Bitcoin Sale Despite Strategic Reserve Order

TheNewsCryptoPublished on 2026-01-06Last updated on 2026-01-06

Abstract

The U.S. government is under scrutiny for allegedly violating its own Executive Order 14233, which mandates that seized Bitcoin must be held in a Strategic Bitcoin Reserve and not sold. Despite this, the U.S. Marshals Service transferred approximately 57.55 BTC (worth $6.3 million) seized in a legal case involving Samourai Wallet to Coinbase Prime, effectively selling it. This action contradicts the order’s intent to treat Bitcoin similarly to gold reserves. U.S. Senator Cynthia Lummis has criticized the move, warning it could weaken the country’s strategic position as other nations accumulate Bitcoin. The incident raises concerns about inconsistent crypto policies and eroding trust in U.S. digital asset strategy.

The controversy has been whether the U.S. government is breaking its own rule by selling Bitcoin that was supposed to be kept as part of the national Bitcoin reserve. They already passed Executive Order 14233 that if the government seized the Bitcoin, then it should not be sold.

In November 2025, The Developer of the Samourai Wallet was involved in a legal case, and as part of the Plea Deal with the U.S. Department of justice they agreed to surrender about 57.55 BTC worth $6.3 million. This seized Bitcoin was handled by the U.S. Marshals Service, which manages all the seized assets. Instead of holding the Bitcoin, the Blockchain data shows that the BTC was transferred to Coinbase Prime, which was a private exchange platform. Now the Wallet shows the Zero Balance. This clearly shows that Bitcoin has been sold.

What the Strategic Bitcoin Reserve Is and Why This Sale Raises Questions

As per the Executive Order of 14233 Any Bitcoin that was seized must be kept in the Strategic Bitcoin Reserves. The Order clearly states that the Government BTC shall not be sold. The Thai Order is passed to keep Bitcoin like the Gold Reserve, not for selling out quickly. The U.S. government has approximately 325,000 BTC in its Reserve, which is primarily accumulated from law enforcement seizures. As per the order, if the Bitcoin were sold, then it would violate this executive order.

Cynthia Lummis, a U.S. Senator and a strong Bitcoin supporter, has publicly criticized the situation. She said that the government should not sell Bitcoin when the President ordered agencies to preserve it. She also warns that the other countries are preserving Bitcoin, but the U.S. could be weakening its strategic positions.

This situation raised Serious Concerns that whether the Federal Agencies are ignoring the white house directives or the U.S. Crypto policies are inconsistent. These types of actions could decrease the trust in the U.S. Crypto Strategy and would put the U.S. behind other Countries in Digital Asset Competition. The lawmakers and the crypto community are closely watching until there is a clear explanation from the U.S. government.

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TagsBitcoinbitcoin reserve

Related Questions

QWhat is the main controversy surrounding the U.S. government's recent Bitcoin sale?

AThe controversy is whether the U.S. government is violating its own Executive Order 14233 by selling Bitcoin that was supposed to be held in the national Bitcoin reserve instead of being sold.

QHow much Bitcoin was seized from the Samourai Wallet developer and what was its value?

AApproximately 57.55 BTC was seized, worth $6.3 million at the time.

QWhich government agency handled the seized Bitcoin and where was it transferred?

AThe U.S. Marshals Service handled the seized Bitcoin and transferred it to Coinbase Prime, a private exchange platform.

QWhat does Executive Order 14233 specify about seized Bitcoin?

AExecutive Order 14233 states that any seized Bitcoin must be kept in the Strategic Bitcoin Reserves and shall not be sold, similar to how gold reserves are maintained.

QWho has publicly criticized the government's action and what was their concern?

AU.S. Senator Cynthia Lummis criticized the action, stating that the government should not sell Bitcoin when ordered to preserve it, and warned this could weaken the U.S. strategic position compared to other countries accumulating Bitcoin.

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