DOJ Confirms Seized Bitcoin Will Remain in Reserve

TLDR

• 57.55 BTC from Samourai Wallet remains unsold in reserve.
• Founders pleaded guilty to operating an unlicensed business.
• New policy aims to stabilize the cryptocurrency market.

The U.S. Department of Justice (DOJ) confirmed on January 16, 2026, that approximately 57.55 BTC forfeited from Samourai Wallet founders has not been sold. The Bitcoin will stay in the U.S. Strategic Bitcoin Reserve (SBR) under Executive Order 14233. This addresses concerns about transactions observed on-chain to Coinbase Prime.

Keonne Rodriguez and William Lonergan Hill, the founders of Samourai Wallet, a privacy-focused Bitcoin mixer, pleaded guilty in August 2025. They were charged in the Southern District of New York for conspiring to operate an unlicensed money transmitting business. Their BTC was linked to over $200 million in illicit transactions.

U.S. Policy Shift on Seized Bitcoin Assets

Historically, U.S. agencies have auctioned or sold forfeited cryptocurrency, adding market supply pressures. However, under Executive Order 14233, signed in March 2025 by President Trump, the policy shifted. The U.S. now retains seized Bitcoin as a national asset in the SBR, potentially reducing market volatility.

The United States Marshals Service confirmed it has not sold the Bitcoin in question and will require multiple approvals for any future liquidation. The DOJ’s statement aligns with a federal strategy to hold onto these digital assets, enforcing retention rather than liquidation.

Reactions from Government and Regulatory Leaders

Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, confirmed on X that these assets will remain on the U.S. government balance sheet as part of the SBR. Senator Lummis’s office expressed approval of this clarity in alignment with federal cryptocurrency strategy.

Concerns arose from market analysts when on-chain data showed approximately $6.3 million in BTC moved from Samourai Wallet addresses to Coinbase Prime. However, the DOJ affirmed no sale took place. Market analysts noted a reduction in volatility following the DOJ’s confirmation.

Background on Samourai Wallet and Legal Proceedings

Samourai Wallet, launched around 2015, is known for its enhanced privacy features such as Whirlpool mixing. These tools were implicated in supporting darknet markets, cybercrime, and financial fraud. The guilty plea by its founders, Rodriguez and Hill, addressed these activities. They forfeited associated Bitcoin assets linked to illegal transactions.

The policy of not liquidating these assets places the focus on Treasury management. There are no specific allocations, grants, or new institutional involvement following this change. The strategic reserve management aims to bolster the government’s stance in the digital asset space.

UPDATE: We have received confirmation from DOJ that the digital assets forfeited by Samourai Wallet have not been liquidated and will not be liquidated, per EO 14233.

Patrick Witt

Implications for the Cryptocurrency Market

The decision to retain the Bitcoin within the SBR reflects a strategic choice to manage these assets within the national budget, impacting future federal policies on digital currencies. By holding onto Bitcoin, the U.S. aims for potential long-term benefits rather than immediate liquidity.

This development signifies a potential precedent for handling seized assets, emphasizing a coherent strategy towards holding digital currencies in reserve. Market participants are closely watching these policy moves, as government decisions could set trends for future asset management.