The news confirms that approximately 58 btc, forfeited from samourai wallet developers, will not be liquidated by the u.s. government but will instead be added to the strategic bitcoin reserve. while preventing a potential sell-off is positive, the quantity of bitcoin (58 btc, roughly $6.3 million) is relatively small compared to bitcoin's daily trading volume and overall market cap, thus limiting its immediate price impact.
The information comes directly from the u.s. department of justice, confirmed by patrick witt, executive director of the president's council of advisors for digital assets, citing executive order 14233.
The decision to retain the forfeited bitcoin rather than sell it removes a minor potential bearish catalyst (government sell-off). however, given the small volume relative to the overall market, it's unlikely to generate significant upward price movement. it mainly removes a small supply overhang concern.
The immediate relief from the confirmation of no liquidation might cause a very minor positive sentiment, but the impact of this specific quantity of bitcoin on market dynamics will be short-lived due to its size. the long-term implication could be establishing a precedent for government-held crypto reserves.
Cover image via www.flickr.com Read U.TODAY on Google News The U.S. Department of Justice has confirmed that the Bitcoin forfeited by Samourai Wallet developers will not be sold and will remain part of the United States’ Strategic Bitcoin Reserve (SBR), according to Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets. Advertisement UPDATE: we have received confirmation from DOJ that the digital assets forfeited by Samourai Wallet have not been liquidated and will not be liquidated, per EO 14233. They will remain on the USG balance sheet as part of the SBR. https://t.co/v2GchC3vk8 — Patrick Witt (@patrickjwitt) January 16, 2026 The November forfeiture The clarification comes after earlier reports suggested the Department of Justice, via the Southern District of New York and the U.S. Marshals Service, may have liquidated the $6.3 million worth of bitcoin forfeited by Samourai developers Keonne Rodriguez and William Lonergan Hill as part of their plea deal. HOT Stories Samourai Bitcoin to Stay in Strategic Reserve Morning Crypto Report: Say Goodbye to 1.21% of All XRP, Shiba Inu (SHIB) Confirms Golden Cross: 23% Rally Expected, Cardano Price Prints Legendary Bull Pattern: ADA Next Silver? XRP, TSLA, and GME Among Top Searches on Elon Musk's X Crypto Market Review: XRP Loses Impulse; Bitcoin (BTC) Signals Oversold Conditions; Shiba Inu (SHIB) Rejected Under Tight Range U.S. prosecutors in the Southern District of New York alleged that Samourai facilitated the transmission of over $2 billion in illicit funds and laundered more than $100 million through criminal markets and fraud schemes. In July 2025, co‑founders Rodriguez and Hill pleaded guilty to operating an unlicensed money transmitting business. Both were sentenced in November 2025 to multi‑year prison terms. Advertisement You Might Also Like Tue, 10/22/2024 - 10:39 Here's How Government Can "Confiscate" Your Bitcoin: Samson Mow By Yuri Molchan The controversy traces back to the November 2025 forfeiture. Back then, the developers transferred roughly 58 BTC to the U.S. Marshals Service. Public filings and investigative reporting indicated the assets were sent to a Coinbase Prime custody address. This raised some concerns that the Bitcoin might have been sold in apparent violation of Executive Order 14233. Advertisement The executive order explicitly mandates that bitcoin obtained via criminal or civil forfeiture should be retained on the federal balance sheet and incorporated into the Strategic Bitcoin Reserve instead of being liquidated. Some speculated that the transaction may have bypassed direct USMS custody. In fact, some observers pointed to such patterns within the Southern District of New York. The district prosecuted Samourai Wallet developers and other crypto cases, including high-profile actions against Tornado. However, it is now clear that the Bitcoins remain on the U.S. government’s balance sheet, and the US government does not intend to liquidate these coins. #Bitcoin News #Crypto Reserve