Did Trump's executive order violate? U.S. Department of Justice reportedly sold 57 confiscated bitcoins without cause

Source: TokenPost Original Title: U.S. Department of Justice Violates Administrative Orders, Secretly Sells 57 Seized Bitcoins Original Link:

Department of Justice Violates Administrative Orders, Secretly Sells Seized Bitcoins

The U.S. Department of Justice has been exposed for violating President Trump’s administrative orders by selling seized assets that were originally intended to be transferred into the strategic Bitcoin reserve. The order explicitly requires the government to retain seized Bitcoin and prohibits its sale.

“Prohibition on Sale” Order Violated, DOJ Suspected of Liquidating 57 Bitcoins

On November 3, 2025, the U.S. Department of Justice sold 57 Bitcoins seized from the developer of Samourai Wallet through a trading platform. This directly contravenes Executive Order 14233 signed by President Donald Trump on March 6 of the same year. The order clearly states that Bitcoin obtained through criminal or civil proceedings should be transferred to the U.S. strategic Bitcoin reserve, not sold.

The liquidation of Bitcoin relates to cases involving developers Keonne Rodriguez and William Lonergan Hill, who have pleaded guilty and voluntarily forfeited approximately $6.3 million worth of Bitcoin. According to “Asset Liquidation Agreement” documents obtained by industry media, prosecutors instructed law enforcement to sell these assets. The Bitcoin was subsequently transferred to an address on a trading platform, which currently shows a zero balance, suggesting the Bitcoin may have been sold.

Southern District Prosecutor Ignored Orders, Violated Strategic Sale Ban

This is not the first controversy. In 2025, the Southern District of New York also violated regulatory policy relaxations by prosecuting Samourai Wallet developer and Ethereum mixer Tornado Cash developer Roman Storm. Although Deputy Attorney General Todd Blanche issued an internal memo stating “cryptocurrency exchanges, mixing services, or offline wallet services should not be responsible for user behavior,” the Southern District ignored this directive and pushed forward with investigations.

Additionally, prosecutors disregarded the internal judgment of the Financial Crimes Enforcement Network (FinCEN)—which considers Samourai Wallet’s “non-custodial” mode (not directly holding user assets) as unlikely to qualify as a “remittance service.” Due to its inconsistent stance with federal policy, the Southern District of New York has even been nicknamed “Independent Kingdom.”

Congressional and Expert Criticism… Conflicting with Strategic Asset Policy

The controversy over the sale has sparked strong criticism from the Senate. Senator Cynthia Lummis stated, “While other countries are stockpiling Bitcoin, the U.S. is selling it,” highlighting concerns from a national security perspective. She emphasized, “Globally, Bitcoin is being adopted as a strategic asset, but the U.S. is wasting it.”

President Trump’s executive order categorizes Bitcoin into two domains: “Strategic Bitcoin Reserve” and “Digital Asset Reserve,” explicitly stating that the former should be “not sold, kept in accordance with national objectives.” Specifically, forced disposal is only permitted under limited circumstances—including victim compensation, international cooperative investigations, and legal requirements. This case does not fall under those exceptions.

Although the Department of Justice applied the U.S. Federal Law Title 18, Section 982(a)(1), citing illegal fund transfers, this section does not explicitly specify asset sale provisions. The market widely perceives this as directly conflicting with President Trump’s policy of “Bitcoin = Digital Gold,” and further disputes are expected to escalate.

White House Also Paying Attention… Trump Hints at Considering Pardons

Rodriguez was sentenced to 5 years in prison on November 6, Hill to 4 years on November 19. The 57 seized Bitcoins are considered proceeds of crime and have been transferred to the treasury. However, President Trump stated during a White House press conference on December 16, “I’ve heard about that case, and it will be reviewed,” implying the possibility of a pardon. Patrick Witt, head of the U.S. President’s Advisory Committee on Digital Assets, said, “The committee is investigating this Bitcoin liquidation event.”

Rodriguez later expressed gratitude via social media, stating that President Trump is aware of cases where the law has been politicized. Trump has previously pardoned the founder of the dark web marketplace Ross Ulbricht and a former CEO of a certain exchange, and may take similar actions in this case.

Industry experts generally believe that since the U.S. government has declared Bitcoin as a “strategic asset,” asset disposal should involve stricter review and reporting systems to ensure alignment with policy directions.