Did the DOJ Break Rules Selling Samourai Wallet Bitcoin?

The DOJ allegedly sold $6.3M in Bitcoin seized from Samourai Wallet, possibly violating an executive order. However, on-chain data does not confirm a sale, and proof would require off-chain records.

Reports have emerged that the US Department of Justice, via the US Marshals Service, sold approximately 57.55 Bitcoin, valued at around $6.3 million, which was forfeited by the Samourai Wallet developers. This action is alleged to violate Executive Order 14233, which mandates that forfeited Bitcoin be held in the US Strategic Bitcoin Reserve rather than sold. The Bitcoin was transferred to a Coinbase Prime address, and the zero balance of the address has been cited as evidence of a sale. However, on-chain data only confirms the transfer and internal movement within Coinbase Prime's custody infrastructure, with no direct blockchain evidence of a sale or liquidation. Since Bitcoin-to-USD conversions on Coinbase Prime occur off-chain, confirmation of a sale would require access to non-public documentation. Legal experts note that none of the executive order's exceptions appear to apply, raising questions about the DOJ's compliance. The situation has sparked debate over the enforcement of the executive order and the handling of seized digital assets.