US DOJ Accused of Selling Bitcoins Obtained Through Samourai Wallet Developer's Plea Deal

The U.S. Department of Justice (DOJ) has been accused of selling 57.55 bitcoins—worth about $6.367 million—forfeited in a plea deal with Samourai Wallet developer Keonne Rodriguez. The bitcoin was transferred to Coinbase Prime for liquidation on November 3, 2025 according to on-chain data. This move raised concerns about potential violations of Executive Order 14233, which mandates that government-seized bitcoin be retained as part of the U.S. Strategic Bitcoin Reserve according to reports.

The transfer of bitcoin from Rodriguez and co-defendant William Lonergan Hill was part of a plea agreement. Under the agreement, they forfeited the cryptocurrency as a condition of the deal. The DOJ's decision to liquidate the bitcoin, rather than holding it as required by the executive order, has drawn scrutiny according to analysis.

A review of on-chain data shows that the bitcoin was transferred to a wallet but does not confirm that it was sold. The blockchain does not show the funds moving beyond Coinbase's infrastructure or being fragmented in a way typical of a sale according to on-chain analysis.

Why Did This Happen?

Executive Order 14233 was introduced to ensure that bitcoin acquired through criminal or civil forfeiture is retained as a strategic asset. The DOJ, however, appears to have proceeded with the sale through the U.S. Marshals Service (USMS), raising questions about compliance with the order according to reports.

The plea deal originated under the previous administration, which was critical of noncustodial crypto tools. This context has led some to suggest the decision reflects a continued bias against holding digital assets according to analysis.

How Did Markets React?

The broader crypto market has shown mixed reactions to the news. Some analysts argue that the potential violation of the executive order could undermine confidence in the government's commitment to a pro-crypto stance according to market analysis. Others note that the on-chain data does not confirm a sale, so market impact remains limited for now according to blockchain data.

The controversy has also sparked debates about the DOJ's role in enforcing crypto-related regulations and the extent to which it follows presidential directives. The U.S. Marshals Service reportedly acted without clear guidance that would have required the DOJ to retain the bitcoin according to reports.

What Are Analysts Watching Next?

Analysts are closely monitoring whether the Biden administration will address the alleged violation or take action to enforce compliance with Executive Order 14233. A review of court records or internal DOJ documentation would be needed to confirm whether the sale occurred and whether it was in violation of the executive order according to analysts.

President Trump has expressed interest in pardoning Rodriguez, which could signal a shift in the administration's approach to crypto enforcement. This development adds to the uncertainty surrounding the DOJ's actions and the future of executive order compliance according to reports.

The outcome of this case may influence how other agencies handle seized digital assets in the future. If the sale is confirmed as a violation, it could lead to policy changes or internal investigations according to legal experts.

The broader implications for the U.S. Strategic Bitcoin Reserve remain unclear. The controversy highlights the challenges of balancing legal enforcement with the need to establish a coherent strategy for managing digital assets at the federal level according to experts.