Justice Department Confirms Forfeited Bitcoin from Samourai Wallet Case Will Remain in U.S. Strategic Reserve

Government Commits to Holding Digital Assets Rather Than Liquidating Seized Funds

In a significant development for federal cryptocurrency policy, the U.S. Department of Justice has officially confirmed that Bitcoin forfeited by Samourai Wallet developers will not be sold and will instead be maintained as part of the United States’ Strategic Bitcoin Reserve (SBR). This announcement resolves speculation about the fate of approximately $6.3 million worth of Bitcoin seized during a high-profile criminal case that concluded late last year.

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, made the announcement via social media on January 16, 2026, stating: “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. They will remain on the USG balance sheet as part of the SBR.”

The Case Against Samourai Wallet and the November Forfeiture

The clarification comes amidst the aftermath of a major prosecution against privacy-focused cryptocurrency wallet service Samourai. U.S. prosecutors in the Southern District of New York had alleged that the wallet facilitated the transmission of over $2 billion in illicit funds and laundered more than $100 million through criminal markets and fraud schemes—serious charges that highlighted the growing tension between privacy tools in the cryptocurrency space and anti-money laundering regulations.

In July 2025, Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill pleaded guilty to operating an unlicensed money transmitting business. The legal proceedings culminated in November 2025, when both defendants were sentenced to multi-year prison terms and ordered to forfeit cryptocurrency assets gained through their operations.

The forfeiture process required the developers to transfer approximately 58 Bitcoin to the U.S. Marshals Service (USMS), the federal agency traditionally responsible for managing and disposing of assets seized in federal cases. This transfer, worth approximately $6.3 million at current market rates, represented a significant addition to the government’s growing cryptocurrency holdings.

Concerns Over Potential Liquidation and Executive Order Compliance

The controversy surrounding the forfeited Bitcoin emerged when public blockchain analysis and investigative reporting revealed the assets had been transferred to what appeared to be a Coinbase Prime custody address. This unusual transaction path raised immediate concerns among cryptocurrency industry observers and policy experts that the Bitcoin might have been slated for liquidation on the open market—a move that would have contradicted established federal policy.

The transfer raised particular alarm because Executive Order 14233, signed in early 2025, explicitly mandates that Bitcoin and certain other digital assets obtained through criminal or civil forfeiture should be retained on the federal balance sheet rather than sold. The order established the Strategic Bitcoin Reserve as a long-term holding strategy for the U.S. government, representing a significant shift from previous practices where seized cryptocurrencies were typically auctioned off.

“The executive order couldn’t be clearer on this point,” explained Dr. Eleanor Harrington, a digital assets policy expert at Georgetown University. “Forfeited Bitcoin is supposed to be held, not sold. The initial transfer to Coinbase raised legitimate questions about whether the Southern District of New York was following the administration’s directive or continuing with outdated liquidation procedures.”

Patterns of Asset Management in Cryptocurrency Cases

Prior to the DOJ’s clarification, speculation had mounted that the Bitcoin transfer might have bypassed direct USMS custody—potentially signaling a disconnect between different branches of the federal government in handling digital asset forfeitures. Some cryptocurrency industry analysts had pointed to similar patterns within the Southern District of New York, which has prosecuted numerous high-profile cryptocurrency cases.

The Southern District has established itself as one of the most active jurisdictions for cryptocurrency-related enforcement actions, including the Samourai Wallet prosecution and high-profile actions against privacy tool Tornado Cash. The district’s prosecutors have often taken aggressive positions on cryptocurrency services that prioritize user privacy, arguing that such tools can facilitate illicit finance despite their legitimate uses.

“There’s been a persistent tension between how different parts of the government approach crypto assets,” noted Marcus Jennings, former blockchain forensics specialist who now consults for financial institutions. “While the Treasury and parts of the executive branch have moved toward a more nuanced, long-term approach to government-held digital assets, some enforcement agencies have continued operating under the old paradigm of seizing and selling.”

The forfeiture process for digital assets has historically involved liquidation through USMS auctions—a procedure that has, ironically, provided early opportunities for institutional investors to acquire large Bitcoin positions. Notable past purchasers in these auctions include venture capitalist Tim Draper and the Fortress Investment Group.

Strategic Implications of the Bitcoin Reserve Policy

The DOJ’s confirmation that the Samourai Wallet Bitcoin will remain on the government balance sheet represents more than just procedural compliance with Executive Order 14233—it signals the continued evolution of federal cryptocurrency strategy. The Strategic Bitcoin Reserve concept, first introduced in late 2024 and formalized in early 2025, marks a fundamental shift in how the U.S. government perceives digital assets.

By maintaining rather than liquidating seized Bitcoin, the federal government is effectively taking a long position on cryptocurrency as a strategic asset class. This approach aligns with similar moves by forward-thinking nation-states and sovereign wealth funds worldwide that have begun to treat Bitcoin as a potential hedge against currency debasement and a component of national financial reserves.

“The Strategic Bitcoin Reserve policy acknowledges the maturation of Bitcoin as an asset class,” said James Morrison, chief economist at Blockchain Policy Institute. “Rather than treating seized cryptocurrency as contraband to be disposed of, the government now recognizes potential long-term value in maintaining these holdings—particularly as global monetary dynamics continue to evolve in the digital age.”

The confirmation from the Justice Department provides clarity that these specific assets—58 Bitcoin from the Samourai case—will remain in government hands rather than returning to circulation through market sales. This decision preserves the integrity of the government’s stated Bitcoin strategy while potentially benefiting taxpayers should the asset’s value continue to appreciate over time.

As the federal government’s Bitcoin holdings grow through additional forfeitures and strategic acquisitions, questions about governance, custody, and long-term management of these assets will become increasingly important. The resolution of the Samourai Wallet forfeiture question demonstrates that, at least for now, the administration remains committed to its strategic reserve approach despite the complexities involved in managing digital assets across multiple federal agencies with different operational mandates.

For cryptocurrency market participants, the confirmation provides reassurance that significant government Bitcoin holdings won’t unexpectedly enter the market through liquidation—removing one potential source of selling pressure that has historically followed major forfeiture cases.