The U.S. Bitcoin policy is under renewed scrutiny. An early November transaction has shaken Washington’s balance. Senator Cynthia Lummis strongly criticized the Department of Justice (DOJ) for selling seized Bitcoin. The issue quickly escalated from a routine liquidation to a strategic security debate.
Timing is critical. The sale occurred shortly after President Donald Trump’s executive order directed that seized Bitcoin be added to the U.S. Strategic Bitcoin Reserve. This move has created both political and structural risk concerns.
Sale Conflicts With Executive Order
The U.S. Marshals Service (USMS) sold 57.55 BTC, valued at roughly $6.3 million, under DOJ instructions. These coins came from Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill as part of their plea agreements.
Senator Lummis sees the sale as a principle issue. She argues that the executive branch has ignored its own framework. Lummis commented:
“We can’t squander these strategic assets while other nations accumulate Bitcoin. This report deeply concerns me.”
She claims the action may violate Executive Order 14233, which requires Bitcoin obtained through forfeiture to be held in the Strategic Reserve rather than sold.
On-Chain Data Supports the Sale
The most revealing evidence comes from blockchain activity. According to Arkham data, on November 3, 2025, approximately $6.36 million in Bitcoin moved from Rodriguez and Hill’s addresses to the USMS wallet 3Lz5U.
The Bitcoin was then transferred to Coinbase Prime Deposit (1AaFQ), linked to Coinbase Prime. The address now shows a zero balance, indicating the assets were likely sold.
While technically a transfer, this movement is the key point in the strategic reserve debate.
White House Review Underway
The issue extends beyond Congress. Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, confirmed that the Trump administration is investigating the possible violation. This raises questions about whether the DOJ has conducted similar sales elsewhere.
Lummis warns the risk is broader. Some countries, notably China, hold seized Bitcoin rather than selling it. She argues that the U.S. risks losing strategic ground in this global race.
Why It Matters
This event shows Bitcoin still lacks a clear role in the U.S. The debate is not only legal but also about institutional consistency. Selling assets while a presidential order is active undermines the Strategic Reserve message.
Uncertainty remains. How the review unfolds will influence both Bitcoin pricing and U.S. digital asset policy in the months ahead.

