Administrative orders are being overridden: On what grounds is the Department of Justice selling Samourai's BTC?

A “misstep” by the U.S. Department of Justice is sparking heated discussions in the industry. Although Executive Order 14233 by Trump explicitly states that confiscated Bitcoin must be stored in the U.S. Strategic BTC Reserve, the Department of Justice and the U.S. Marshals Service apparently sold approximately 57.55 BTC—worth $6.3 million to $6.35 million—through Coinbase Prime on November 3, 2025, from assets seized from Samourai Wallet developer. This not only violates the executive order but also marks the first time SDNY (Southern District of New York) has ignored federal guidance in the Samourai case.

The Huge Gap Between Regulations and Reality

What the executive order stipulates

Executive Order 14233 by Trump is a significant policy document aimed at establishing the United States’ strategic Bitcoin reserve. It explicitly requires that Bitcoin confiscated or obtained by the government be stored in this reserve, not sold at will. The background of this policy is the U.S. re-evaluating its stance on crypto assets, attempting to treat Bitcoin as a strategic national asset.

Actual actions by the Department of Justice

However, a clear discrepancy has emerged between regulations and actual practice. According to court records and reports from Bitcoin Magazine, the U.S. Marshals Service (USMS), under the Department of Justice’s instructions, directly sold the Bitcoin seized from Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill via Coinbase Prime on November 3, 2025.

Details of this transaction include:

• Amount of BTC sold: 57.55 BTC
• Transaction value: approximately $6.3 million to $6.35 million
• Sale date: November 3, 2025
• Sale channel: Coinbase Prime (institutional custody platform)
• Involved individuals: Keonne Rodriguez, William Lonergan Hill

This is not the first time

More notably, this is not the first time SDNY has ignored federal guidance in the Samourai case. From arrest to trial, SDNY has shown disregard for federal policies at multiple stages. This pattern reflects a deeper issue: whether there are power conflicts or coordination problems among different government agencies.

Reflection on Deeper Issues

The chaos of power structures

This incident exposes internal power operation issues within the U.S. government. Executive orders represent the president’s policy intent, but the Department of Justice, as an independent law enforcement agency, seems capable of bypassing these directives in certain cases. This raises a question: how strong is the binding force of executive orders?

From a personal perspective, this may reflect one of two issues: either the DOJ misinterprets the executive order, or it has the authority to make autonomous decisions in specific situations. Regardless, publicly selling seized assets without depositing them into the strategic reserve as mandated by the executive order is inherently questionable.

Political Struggles Over Crypto Assets

This incident also highlights the complex political status of crypto assets in the U.S. The Trump administration aimed to control Bitcoin through the strategic reserve, while the DOJ’s actions may suggest a negative attitude toward this policy or reflect traditional law enforcement’s differing views on crypto assets.

Impact on Markets and Privacy Projects

Market Perspective

From the BTC price standpoint, it is currently at $93,861.72, up 2.58% in 24 hours. Although the amount of BTC sold is not large (relative to the global BTC market cap of $1.87 trillion), its political significance far exceeds its economic impact. The opaque operation of government power could undermine investor confidence in policy stability.

Long-term Impact on Privacy Projects

As a privacy tool, Samourai Wallet’s developers’ experience has become a landmark event in the privacy sector. According to related information, privacy is becoming a core narrative in crypto by 2026, evolving from regulatory suppression to compliance requirements. However, the DOJ’s continued crackdown on Samourai developers and the recent illegal sale indicate ongoing contradictions in the government’s attitude toward privacy technology.

Future Directions

This incident may lead to several developments:

1. Legally, Samourai developers or their supporters might challenge the DOJ’s misconduct, potentially resulting in new lawsuits or administrative reviews.

2. Policy-wise, the power imbalance revealed could prompt the Trump administration to enforce executive orders more strictly.

3. Market-wise, if opaque government operations become routine, it could affect institutional investors’ confidence in U.S. crypto policies.

Summary

The DOJ’s violation of the executive order by selling Samourai developers’ BTC is not just an improper law enforcement act but also a transparency issue in power operations. If even the DOJ refuses to comply with the strategic BTC reserve policy, the effectiveness of that policy is questionable. This incident reminds us that in the crypto space, policy consistency and enforcement are equally important. Investors and industry participants should pay attention not only to the policies themselves but also to whether different departments are truly executing these policies. For privacy projects, this event further illustrates that the future of privacy tech remains uncertain, but it also creates narrative space for the development of this sector.