White House Confirms Bitcoin Seized from Samourai Wallet Developers Has Not Been Sold

The White House has confirmed that the nearly $6.4 million worth of Bitcoin seized from the Samourai Wallet developers has not been sold and will be added to the federal Strategic Bitcoin Reserve. This clarification addresses concerns raised by attorneys and family members of the developers, who feared the Department of Justice might liquidate the funds contrary to the intent of recent executive orders.

The announcement comes after legal documents, including an asset liquidation agreement reviewed by Decrypt, suggested that the U.S. Marshals Service might have been authorized to sell the Bitcoin. This raised questions about whether the move aligned with Executive Order 14233, which mandates that seized Bitcoin be retained as part of the federal reserve.

Patrick Witt, executive director of the Digital Assets Council, confirmed the DOJ had clarified that the assets would not be liquidated and would instead remain on the government's balance sheet. The Bitcoin will now be incorporated into the Strategic Bitcoin Reserve, a shift that reflects a broader policy change in how the government handles seized cryptocurrency.

Why Did This Happen?

The confusion began after reports surfaced that the U.S. Marshals Service had sent the Bitcoin to a Coinbase Prime address, raising concerns about potential sales. This led to speculation that the DOJ may have ignored the executive order and proceeded with a liquidation.

However, the government's confirmation resolved the uncertainty. The assets have not moved from the government's custody and will not be sold in the future according to confirmation. This aligns with Executive Order 14233, which requires forfeited Bitcoin to be held rather than liquidated.

How Did Markets React?

The confirmation brought clarity to the market, which had seen speculation about potential sell-offs from the government's Bitcoin holdings. The U.S. government currently holds more than 328,000 BTC, valued at over $31 billion, and the Samourai Bitcoin is now part of that reserve.

Market analysts noted that the policy shift helps prevent sudden sell-pressure from the government's reserves, which could have impacted Bitcoin's price. The confirmation also supports the government's evolving approach to digital assets, moving from ad-hoc liquidations to a more structured custody model.

What Are Analysts Watching Next?

Experts are now focusing on how this decision sets a precedent for future cases involving seized Bitcoin. The Samourai case has already sparked debate about the future of privacy-focused software and the government's role in regulating digital assets.

Privacy advocates remain skeptical about whether the government will consistently follow through with its stated policies. Lauren Emily Rodriguez, the wife of one of the Samourai developers, expressed doubts about transparency.

The case also highlights the broader debate about how the government should manage digital assets. The confirmation that the Bitcoin will not be sold reinforces the administration's push to treat Bitcoin as a strategic reserve asset rather than a commodity to be auctioned off.

Moving forward, the government will continue to evaluate how to expand its Bitcoin holdings in a way that aligns with its financial goals and regulatory framework. Analysts will be watching how this policy is applied in similar cases and whether it leads to more institutional adoption of Bitcoin.