Trump's Bitcoin Storage Policy Comes Under Fire: New York Prosecutors Openly Sold Confiscated BTC, 57 Bitcoins Reveal Cracks in the American Administrative System

On January 6, 2026, explosive news quickly spread through the crypto community: the U.S. Department of Justice may have secretly sold through the (USMS) Federal Court 57.55 bitcoins, confiscated from the developers of the Samourai Wallet private wallet, valued at approximately $6.3 million. At first glance, this appears to be a routine asset disposition procedure, but it directly touched the most sensitive nerve of Trump's administration policy regarding the "strategic Bitcoin reserve" — according to Decree No.14233 signed by Trump on March 6, 2025, all bitcoins obtained through criminal or civil confiscation must be included in the national strategic reserve with an explicit prohibition on "sale."

Is this a simple administrative mistake or outright defiance of the judicial system by the White House? When blockchain tracking showed that this bitcoin was transferred to the Coinbase Prime address on November 3, 2025, with a subsequent zero balance, a hidden struggle emerged over who is the real boss here.

Event Reconstruction: The Path of the "Disappearance" of 57.55 Bitcoins

The story began with a guilty plea agreement by Samourai Wallet developers Keon Rodriguez and William Lonergan Hill. Both agreed to confiscate approximately $6.3 million worth of bitcoin, transferred on November 3, 2025. According to the "Asset Liquidation Agreement" obtained by Bitcoin Magazine, these bitcoins were not transferred to the designated account of the (SBR) (Strategic Bitcoin Reserve), but directly arrived at the Coinbase Prime wallet address 3Lz5ULL7nG7vv6nwc8kNnbjDmSnawKS3n8.

Blockchain data clearly shows this transfer; however, subsequent operations caused disagreements. Analysts supporting the "already sold" position point out that the Coinbase Prime address balance is zero, consistent with "funds transferred after sale." However, researchers taking a cautious stance believe this is simply standard custody procedure at Coinbase Prime, where funds are integrated into a cluster of thousands of addresses for internal accounting, and the blockchain cannot confirm that assets have left the infrastructure controlled by Coinbase.

Key Point: BTC/USD Conversion on Coinbase Prime Usually Concludes Off-Chain. This means that even after the sale, there may be no trace on the blockchain. To confirm a violation, access to confiscation court orders, asset management records from the Federal Court, or Coinbase transaction execution files is required — exactly what is in the inaccessible "black box."

Legal Gray Area: How Strong Is the Binding Force of the Decree?

Trump's Decree No.14233 clearly states that "government Bitcoin" must be stored and not sold. However, legal experts point out that the decree does not explicitly revoke prosecutors' discretionary authority over asset disposition. Section 982(a)(1) of Title 18 of the U.S. Code grants the Department of Justice the right to confiscate property but does not require mandatory "liquidation."

This is where SDNY (Southern District of New York Federal Prosecutor's Office) might have found a "loophole": although the decree reflects the president's will, prosecutors can cite their independence, claiming that specific asset disposition in a particular case should follow judicial tradition — historically, confiscated assets were quickly liquidated to avoid price fluctuation risks. An anonymous official from the Department of Justice revealed to media sources: "SDNY traditionally considers Bitcoin a 'taboo asset' and rushes to 'cleanse' it before adding to the reserve."

Deeper contradiction lies in the fact that the investigation into Samourai began during the Biden administration, when the Department of Justice was highly hostile toward non-custodial crypto tools. Although Trump appointed crypto-friendly officials after taking office, the thinking habits of key prosecutors did not change accordingly. Deputy Attorney General Todd Blanche explicitly ordered on April 7, 2025, to stop the "witch hunt" against non-custodial wallets, but SDNY not only continued the prosecution in the Samourai case but also persistently pursued Tornado Cash developer Roman Storm.

When a senior official from the Financial Crimes Enforcement Network (FinCEN) hinted that the non-custodial nature of Samourai does not fall under the definition of a money transfer institution, SDNY acted on its own. Such an approach — "when the commander is far away, the emperor's orders may not be fully executed" — exposes the difficulties of implementing new policies within the extensive federal bureaucratic system.

"New York Sovereignty": Crypto War of the Deep State

SDNY has long been known in the American judicial system as "New York sovereignty," famed for its independence, toughness, and even rebellious style. This event is not the first time it has challenged Washington's authority. In 2025, when the Trump administration announced a loosening of crypto oversight, SDNY still pursued several old cases, earning the ironic nickname "the last bastion of the deep state."

Industry experts believe that the "disappearance" of these 57.55 bitcoins is essentially a direct confrontation between the executive branch and the judicial bureaucratic system. Although Trump is president, he cannot directly control specific judicial decisions by prosecutors. SDNY, exercising its authority through "lawful inertia," did not violate open law but certainly undermined the White House's policy authority.

The danger of this "soft confrontation" is that it undermines market confidence in "policy consistency." If even the presidential decree cannot ensure confiscated assets are added to the strategic reserve, Trump's plan for a "reserve of 200,000 bitcoins" becomes a hollow declaration. Moreover, while the Department of Justice "spent" these 57 bitcoins, the U.S. government confiscated 127,000 bitcoins (about $14.1 billion) in another case and explicitly stated they would be included in the strategic reserve. One government, two different standards, confusing the market.

Political Confrontation: Trump's Awkward Next Position

The event puts Trump in a dilemma. On one hand, he considers pardoning Rodriguez as a sign of support for non-custodial technologies; on the other hand, his subordinate agencies act against his will, selling bitcoins that should belong to the state. If Trump chooses to ignore, his reputation as the "Bitcoin President" will be seriously damaged; if he demands an investigation or punishment of SDNY, it could trigger a constitutional crisis of executive interference in judicial independence.

After the news broke, the White House issued a statement that it is "reviewing the situation," without directly condemning SDNY. This ambiguous stance reflects that in the face of the vast federal apparatus, the president's will may not always be unimpeded. The so-called "deep state" is not a conspiracy theory but a collection of tens of thousands of government officials with their own interests and thinking habits.

Truth Verification: Sale vs托管, Who Decides?

Currently, the dispute centers on the interpretation of blockchain evidence.

Those who believe the sale has already occurred:

• Zero balance of the address — irrefutable proof

• The document's name "Asset Liquidation Agreement" hints at the intent to sell

• SDNY has a history of quick liquidation

Those who take a cautious stance:

• Transfer to Coinbase Prime is only the first step of托管

• No on-chain transaction records show funds leaving Coinbase

• Waiting for the quarterly asset report from the Federal Court for confirmation

CryptoQuant's lead researcher indicates that Coinbase Prime's off-chain transaction mechanism complicates full verification solely through blockchain data. This exposes a transparency deficit when applying traditional judicial procedures to crypto assets.

Impact Assessment: The "Execution" of the Strategic Reserve Plan

Regardless of whether the 57.55 bitcoins were truly sold, the event has already had a significant impact:

1. Political credibility damaged: the market begins to doubt whether Trump can enforce his crypto policy

2. Judicial sovereignty challenged: SDNY's actions set a "precedent" for other federal prosecutors, which could trigger a chain reaction

3. Investor confidence fluctuates: if the government itself does not adhere to the principle "do not sell Bitcoin," how to convince the market of the sincerity of the strategic reserve?

More seriously, the U.S. Department of Justice in 2026 will consider several major crypto cases involving hundreds of thousands of bitcoins. If each case is decided at the "discretion" of prosecutors, Trump's reserve plan will face "erosion piece by piece."

Conclusion: The Bitcoin War Is Far From Over

Trump's idea of a "strategic Bitcoin reserve," from pre-election promises to administrative decree, was meant to be a milestone in American crypto policy. However, the "small move" by SDNY exposed the harsh truth: in the face of the vast federal bureaucratic machine, the president's will can be just paper.

The "disappearance" of 57 bitcoins not only sold assets but also undermined market confidence in policy consistency. This warns all crypto supporters: a change of administration in the White House is not a military victory, and resistance from the deep state continues.

For investors, this is more important than any technical indicator — when the government itself adheres to double standards of the "strategic reserve" and "quick sale," the "digital gold" of Bitcoin at the institutional level still requires a long fight.

【Blockchain Reflection Question】

In your opinion, the actions of SDNY are:

A. Lawful exercise of prosecutorial discretion; the president should not interfere in justice

B. Open defiance of the administrative decree, damaging the national strategic reserve plan

C. Standard custody transfer, exaggerated by media interpretation

✍ Leave your choice + legal analysis in the comments

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Disclaimer: This article is based on open documents and blockchain data analysis and does not constitute legal or investment advice. The transparency of internal U.S. government procedures is limited; some conclusions are based on reasonable assumptions.

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