In a recent report by Bitcoin Magazine, it has come to light that the US Marshals Service (USMS), operating under the direction of the US Department of Justice (DOJ), has allegedly sold Bitcoin (BTC) forfeited by defendants Keonne Rodriguez and William Lonergan Hill, creators of Samourai Wallet.
Controversial Bitcoin SaleThe document indicates an agreement where the defendants consented to relinquish Bitcoin valued at approximately $6.3 million, which amounted to little over 57 BTC at the time the agreement was finalized on November 3, 2025.
Interestingly, it appears that the Bitcoin transferred on November 3, 2025, did not enter the USMS’s custody directly. Instead, the cryptocurrency seems to have been sent straight to Coinbase Prime, likely for the purpose of sale.
Potential Implications For Crypto RegulationThis decision raises significant legal and ethical questions, particularly regarding compliance with Executive Order 14233. This Order stipulates that BTC acquired through criminal forfeiture—termed “Government BTC”—must not be sold and should instead be allocated to the established Strategic Bitcoin Reserve.
If the USMS has indeed sold the forfeited Bitcoin, it indicates that they proceeded at their own discretion, potentially ignoring the legal mandate outlined in the Executive Order.
The Executive Order also specifies that “Government BTC” falls under the category of “Government Digital Assets,” and it mandates that agency heads cannot sell or otherwise dispose of these assets except under certain conditions, none of which apply to the cases of Rodriguez or Hill.
With this controversy surrounding the sale of seized Bitcoin, the actions of the USMS could spark further debate about how the government manages seized digital assets.
BTC has risen closer to $94,300 at the time of writing, representing a significant 3% increase in the last 24 hours and 8% increase in the last seven days.
Featured image from DALL-E, chart from TradingView.com
