Lede
A White House crypto advisor has provided official confirmation that the United States government has not liquidated Bitcoin forfeited from the Samourai case. Patrick Witt, who serves as the Executive Director of the White House President’s Council of Advisors for Digital Assets, received this confirmation from the US Department of Justice. The announcement effectively puts to rest rumors that had circulated regarding the possible sale of these seized digital assets. According to Witt, the forfeited Bitcoin is designated to remain part of the Strategic Bitcoin Reserve (SBR), adhering to current administrative directives regarding government-held cryptocurrency.
This development underscores a commitment to maintaining seized assets rather than converting them into fiat currency. The confirmation from the Department of Justice clarifies that the digital assets associated with the Samourai Wallet have not been liquidated and will not be liquidated in the future. By retaining these assets, the government continues to build the foundation of its strategic reserve, ensuring that Bitcoin obtained through legal proceedings is preserved as part of the nation’s digital holdings. This policy aligns with broader goals to manage the country’s cryptocurrency portfolio in a manner consistent with a long-term strategic vision for digital assets.
Context
The necessity for this clarification arose in November when blockchain observers flagged a specific transaction involving a US government-controlled BTC address. Analysts identified a transfer of 57.5 Bitcoin to a Coinbase Prime deposit address, which led to accusations that the government was violating existing mandates. Specifically, Executive Order 14233, which was signed by President Donald Trump in March, dictates that any Bitcoin the government obtains through criminal or civil forfeiture “shall not be sold.” This order requires that such assets be held within the Strategic Bitcoin Reserve rather than being auctioned or sold on the open market.
The scale of the US government’s cryptocurrency holdings is substantial. Currently, the United States holds a total of 328,372 Bitcoin, a portfolio worth over $31.3 billion based on current market valuations. A significant recent addition to this tally occurred in October, when the government forfeited 127,271 Bitcoin from a company based in Cambodia. This company was allegedly responsible for operating a “pig butchering” crypto investment scheme. These large-scale forfeitures have significantly contributed to the total assets now under government control, highlighting the importance of clear management policies that dictate how these billions of dollars in digital currency are stored and reported.
Impact
The decision to hold rather than sell forfeited Bitcoin has immediate implications for the administration’s broader digital asset strategy. Patrick Witt has indicated that building out the Strategic Bitcoin Reserve remains a high “priority list” item for the Trump administration. This initiative is expected to move forward once the Treasury and Commerce agencies reach a consensus on how to navigate various legal requirements. By confirming that the Samourai case Bitcoin remains untouched, the government is signaling its intent to follow through on the “shall not be sold” mandate established by Executive Order 14233.
This policy shift represents a departure from historical practices when the government regularly auctioned off seized Bitcoin. The impact of this change is reflected in the growing size of the national Bitcoin treasury. As assets from cases like the Samourai Wallet and the Cambodia-based investment scheme are added to the reserve, the government’s role as one of the largest holders of Bitcoin is solidified. This strategy ensures that the value of forfeited assets is retained within the federal framework as part of a formal strategic reserve rather than being liquidated for immediate revenue. This stability in asset management provides a clearer roadmap for how future forfeitures will be integrated into national reserves.
Outlook
The future of the Strategic Bitcoin Reserve involves both administrative and legislative actions aimed at expanding the national stockpile. The government has stated that its ongoing strategy will focus on accumulating Bitcoin in budget-neutral ways, ensuring there is no direct cost to taxpayers. This approach is designed to grow the national holdings through forfeitures and other non-expenditure methods. In the legislative branch, US Senator Cynthia Lummis has sponsored a Bitcoin reserve bill that seeks to accelerate this accumulation. The goal of this bill is to reach a total of 1 million Bitcoin over a five-year period, which would significantly expand the current holdings.
As the Treasury and Commerce agencies work to resolve legal requirements, the framework for the Strategic Bitcoin Reserve will likely become more formalized. The commitment to not selling forfeited Bitcoin, as seen in the Samourai case, suggests that future seizures will continue to bolster the reserve rather than being sold. The move toward a 1 million Bitcoin target reflects an ambitious long-term outlook for the role of digital assets in the national economy. With the administration maintaining that the SBR is a priority, the focus will remain on integrating these assets into a cohesive and permanent strategic treasury that avoids additional taxpayer burdens.
About the Author
