U.S. Senator Cynthia Lummis, a prominent Bitcoin advocate and co-sponsor of the BITCOIN Act proposing a strategic Bitcoin reserve, expressed strong concern over a recent BTC sell by the U.S. government. The BTC seized from the Samourai Wallet founders needs to be added to the Strategic Bitcoin Reserve, as per an executive order.
Senator Cynthia Lummis Criticizes US DOJ Bitcoin Liquidation
The U.S. Marshals Service (USMS), acting under an order from the Department of Justice (DOJ), reportedly liquidated 57.55 BTC valued at $6.3 million. These assets were forfeited by Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill as part of their plea agreement.
Senator Cynthia Lummis expressed significant concern regarding the U.S. government’s sale of $6.3 million in Bitcoin, despite a presidential order directing that seized Bitcoin be added to the Strategic Bitcoin Reserve.
“We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report,” Lummis stated.
This action is alleged to violate President Donald Trump’s Executive Order 14233. The executive order mandates that Bitcoin acquired through criminal or civil asset forfeiture proceedings must be held as part of the United States’ Strategic Bitcoin Reserve (SBR).
This situation also raises questions regarding whether the Department of Justice has ordered Bitcoin liquidations in other cases. Senator Lummis argued that selling seized Bitcoin undermines efforts to establish a national Bitcoin reserve, particularly as countries such as China and others are accumulating seized Bitcoin.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, confirmed that the Trump administration is investigating the potential violation of the executive order.
We are looking into this. https://t.co/qDcvC3bTML
— Patrick Witt (@patrickjwitt) January 6, 2026
On-Chain Data Shows Bitcoin Moved to Coinbase
According to Arkham data, defendants Keonne Rodriguez and William Lonergan Hill transferred $6.36 million in Bitcoin to the USMS wallet 3Lz5U on November 3, 2025. Bitcoin sent from address bc1q4 likely did not remain in direct custody of the USMS.
The funds were then transferred from the 3Lz5U address to another wallet labeled Coinbase Prime Deposit (1AaFQ). Arkham Intel attributes this address to the brokerage, suggesting the assets were intended for sale. The Coinbase Prime address currently holds a zero balance, which suggests that the seized Bitcoin is likely already sold.
BTC price reacted to the news, slipping from $94,762 to $93,660. Bitcoin climbed 2% over the past 24 hours, supported by a significant rise in trading volume.