On January 6, 2026, Wyoming Republican Senator Cynthia Lummis publicly questioned on social media: "Why is the US government still selling Bitcoin?"
Her criticism targeted a US Department of Justice (DOJ) asset disposal action that took place on November 3, 2025.
On that day, the DOJ instructed the US Marshals Service (USMS) to sell 57.55 Bitcoin—seized from the plea agreement of Samourai Wallet’s privacy wallet developers—via Coinbase Prime. At the time, the assets were worth approximately $6.367 million.
This sale is seen as potentially violating Executive Order 14233, signed during President Trump’s administration, which requires that Bitcoin obtained through criminal forfeiture be added to the "national strategic Bitcoin reserve" rather than sold on the open market.
01 Event Background
A dispute over privacy, regulation, and asset disposal is brewing in the US crypto regulatory landscape. This transaction, exposed in early 2026, involves the DOJ, a presidential executive order, and a high-profile criminal case.
Key information spread quickly through the crypto community and political circles. The Bitcoin address in question was drained to zero, providing clear evidence of the controversy.
At the center of the dispute is a document titled "Executive Order 14233". Signed by former President Trump, the order explicitly states that Bitcoin obtained through criminal forfeiture should be retained as part of the US strategic Bitcoin reserve.
The policy’s intent is to accumulate Bitcoin as a national strategic asset, not to sell it on the market.
The transaction occurred on November 3, 2025. According to Bitcoin Magazine, the DOJ instructed the Marshals Service to transfer 57.553 Bitcoin belonging to the Samourai Wallet developers to a custodial address at Coinbase Prime.
Blockchain data shows the assets were subsequently consolidated into Coinbase’s large custody cluster, and the original deposit address balance dropped to zero.
02 Key Controversies
Opinions on the sale are sharply divided. One side argues that on-chain data clearly shows the assets were transferred and consolidated, with the original address emptied—strongly suggesting a sale took place.
Supporters of this view include Bitcoin Magazine, which first reported the incident, and Senator Lummis, who later raised concerns.
Others take a more cautious stance. BeInCrypto’s analysis points out that while the Bitcoin was moved to Coinbase Prime and underwent internal address consolidation (a standard custody platform procedure), the blockchain itself does not provide direct evidence that the Bitcoin was ultimately converted to fiat.
The funds did not flow to known exchange settlement wallets, nor did they exhibit the typical fragmented execution patterns seen in trading.
The key to determining if there was a violation lies in whether the seized Bitcoin was ever "formally transferred" into a "strategic reserve" treasury account protected by the executive order. This cannot be confirmed solely from blockchain data.
To clarify, one would need to review the court’s forfeiture orders, Marshals Service asset management records, or Coinbase Prime’s settlement documents—off-chain evidence.
03 Case Background
To understand the dispute, it’s necessary to revisit the Samourai Wallet case. Samourai Wallet is a Bitcoin wallet focused on privacy, with CoinJoin mixing as its core feature, designed to enhance transaction anonymity.
In April 2024, the DOJ arrested co-founders Keonne Rodriguez and William Lonergan Hill.
Prosecutors charged them with conspiracy to launder money and conspiracy to operate an unlicensed money transmission business, alleging the service processed over $2 billion in illicit transactions and laundered more than $100 million in criminal proceeds from darknet markets and hacks.
After more than a year of legal battles, the founders made a surprising move in July 2025, pleading guilty to the lesser charge of "unlicensed money transmission" in exchange for the prosecution dropping the more serious money laundering charges.
As part of the plea agreement, they were required to pay a substantial forfeiture. On November 6, 2025, Rodriguez was sentenced to the statutory maximum—five years in prison.
His attorney noted in court that Rodriguez had already paid approximately $6.3 million worth of Bitcoin as forfeiture before sentencing, calling it "highly unusual." This payment is the source of the current controversy.
04 Timeline
This incident is closely tied to the broader context of US cryptocurrency policy. The following timeline outlines the sequence of events from policy inception to public scrutiny.
timelinetitle Key Event Timelinesection 2025President Trump signs : Signs Executive Order 14233<br>Mandates forfeited Bitcoin be added to national strategic reservesection Case ProgressJuly : Samourai developers plead guilty<br>and agree to forfeitureNovember 3 : DOJ instructs<br>Coinbase Prime to dispose of 57.55 BTCNovember 6 : Developer Keonne Rodriguez<br>sentenced to 5 years in prisonsection 2026January 5-6 : Incident exposed by media<br>Senator Lummis publicly raises concerns
05 Market Impact and Reactions
This event occurred during a sensitive period for both the market and policy. Its impact extends beyond the case itself. Structurally, while US crypto market legislation made some progress in 2026, analysts expect further delays, with final rules likely not effective until 2029.
Goldman Sachs reports that regulatory clarity will be a key catalyst for institutional adoption of crypto assets.
From a law enforcement perspective, the Samourai case reinforced the DOJ’s "funds transmission" theory regarding crypto mixers. Although Samourai is a non-custodial wallet, the court found that its servers coordinated mixing processes, equating this to transmitting funds and subjecting it to regulatory oversight.
This sets an important precedent for future cases involving similar technologies.
The possible regulatory breach triggered strong reactions from the crypto community and some lawmakers. Senator Lummis’s public questioning represents legislative oversight of executive actions.
Some commentators argue that if the Trump administration is serious about its pro-crypto stance, it should strictly enforce Executive Order 14233 and halt prosecutions of non-custodial wallet developers.
06 Market Correlation
As of January 6, 2026, despite the regulatory controversy, the crypto market continued to show strong inflows. This reflects long-term optimism about regulatory clarity and growing recognition of Bitcoin as digital gold.
According to the latest data from January 6, US spot Bitcoin ETFs maintained a "strong start" to the year, with total net inflows exceeding $1.16 billion over the first two trading days. This indicates that both institutional and retail investors are steadily increasing their Bitcoin allocations through regulated channels.
On Gate, the Bitcoin price moves in tandem with other major exchanges. Market analysts note that Bitcoin’s technical setup is improving, and the price trend "looks ready to rally again." Regulatory controversies may trigger short-term volatility, but long-term prices are driven by macroeconomics, supply and demand, and broader adoption trends.
The 57.55 Bitcoin involved in this incident are significant in value, but relative to daily on-chain transaction volume and ETF flows, their direct impact on market price is likely limited.
More importantly, the case highlights the government’s inherent conflict as both market participant and regulator in asset disposition.
Outlook
As of January 6, 2026, US spot Bitcoin ETFs continue to post substantial net inflows, topping $1.16 billion over the past two days. In contrast, the DOJ-handled Samourai developer Bitcoin address has long been emptied.
Blockchain transaction records are immutable, just as this debate over privacy, regulation, and asset sovereignty has left its mark on the history of crypto. When enforcement actions and high-level policy intentions diverge, the ultimate interpretation—and the market’s direction—remains delicately balanced.
