Trump's Strategic Reserve Order Gets Flushed! Department of Justice Illegally Sells 57 Bitcoins Triggering Investigation

The US Marshals Office reportedly liquidated 57 Bitcoins on November 3, which may have violated President Trump’s Strategic Reserve Order. The BTC confiscated from Samourai Wallet was processed through Coinbase Prime. On-chain data shows funds moving to Coinbase, but foreign media point out that it cannot be confirmed whether they have been sold. Trump advisors have launched an investigation into this matter.

The Destination of 57 Bitcoins Remains a Mystery

(Source: Bitcoin Magazine)

Foreign media Bitcoin Magazine reported on January 5 that the US Marshals Service (USMS), allegedly under the instructions of the Department of Justice, liquidated about 57 Bitcoins on November 3, 2025, and may have violated Executive Order No. 14233 issued by Trump, which requires seized Bitcoins to be kept in the US Strategic Bitcoin Reserve.

An asset liquidation agreement document obtained exclusively shows that the Marshals Service liquidated Bitcoins from Samourai Wallet developer Keonne Rodriguez and William Lonergan Hill, who were confiscated under a guilty plea agreement. The defendants agreed to transfer approximately $6,367,139 and about 57.55 Bitcoins at that time to the US government.

The media pointed out that after the funds were sent from the relevant address, they seemingly did not go through direct custody by the Marshals Office but flowed directly into a deposit address marked as Coinbase Prime. Since the current balance of that Coinbase Prime address shows zero, external speculation suggests that this batch of Bitcoins may have already been sold. This “zero balance” status is highly suspicious in the eyes of blockchain detectives, usually indicating that the funds have been transferred or sold.

Regarding the allegation that the Bitcoins have been sold, another foreign media BeInCrypto analyzed on-chain data, confirming that the US Department of Justice controlled this batch of Bitcoins, which was indeed transferred to a Coinbase Prime deposit wallet on November 3, then moved to another internal wallet. However, current data is insufficient to confirm that these Bitcoins have been sold.

On-Chain Data Cannot Confirm Sale: The Technical Blind Spot

(Source: Arkham)

Ultimately, these Bitcoins were integrated into Coinbase Prime’s extensive custodial group of thousands of addresses. Such fund transfers and consolidations are typically standard custodial procedures within Coinbase Prime’s infrastructure. So far, no outflow of funds from Coinbase-controlled infrastructure has been observed, nor are there signs of typical transaction splitting or movement toward exchange settlement wallets.

This technical blind spot highlights the limitations of blockchain transparency. While all transfers are publicly accessible, key information such as internal fund management within Coinbase Prime, whether the assets were actually sold, at what price, and who benefits, cannot be discerned from on-chain data. Coinbase Prime, as an institutional custody service, has a highly complex internal account system, and fund movements between internal wallets are common.

Three Key Evidence Points to Determine Violations

Court Seizure or Disposition Orders: Whether explicitly requiring sale or retention in the strategic reserve

Internal Asset Management Records of the Marshals Office: Approval processes and decision documents for asset disposition

Actual Transaction Settlement Documents of Coinbase Prime: Whether fiat currency exchange transactions were executed

Currently, the controversy over whether the Department of Justice violated Executive Order No. 14233 hinges on the status of these assets, defined as “government Bitcoins.” However, this is difficult to clarify solely through on-chain data. To confirm whether the DOJ violated regulations, one must examine court-issued seizure or disposition orders, internal asset management records of the Marshals Service, or actual transaction settlement documents of Coinbase Prime. These key pieces of information are not publicly available at this time.

Political Signal of Trump Advisors’ Investigation

In response, Trump advisors have publicly stated that they are investigating whether the Department of Justice violated the Strategic Reserve Executive Order. This high-profile statement itself is a political signal, indicating that Trump’s team considers this matter serious. If the investigation confirms that the DOJ violated regulations by selling, it could lead to officials being dismissed or held accountable, thereby strengthening Trump’s control over federal agencies.

From the timeline perspective, November 3 coincides with Trump’s victory in the election but before his inauguration. During this transition period, Biden’s officials still held power, but the administration was in a “lame duck” state. If DOJ officials violated policies at this time, it might reflect disagreement with the incoming administration’s policies or an attempt to create facts before the handover.

Executive Order No. 14233 mandates that seized Bitcoins be retained in the strategic reserve, which is central to Trump’s “Making the US the Crypto Capital” strategy. If the DOJ openly violated this order, it would be a direct challenge to the executive order and Trump’s crypto policies. Such internal conflicts, if unpunished, could weaken Trump’s policy authority.

From Trump’s perspective, this case also presents an opportunity to reorganize federal agencies. Since taking office, Trump has sought to purge officials he perceives as disloyal “deep state” actors. If the DOJ’s violation is confirmed, it would provide a legitimate reason for large-scale personnel adjustments.

Overall, the fate of these 57 Bitcoins remains a mystery. On-chain data shows funds entering Coinbase Prime but cannot confirm they have been sold. Trump advisors’ investigation will reveal the truth, and if violations are confirmed, it could trigger a shake-up in the DOJ’s leadership. Regardless of the outcome, this case highlights the complexity of executing strategic reserve policies.