In the eyes of supporters of cryptocurrency, Trump's return to the White House marks the beginning of a new era for digital currencies. Trump’s return to the White House, promising to include Bitcoin in the national strategic reserve; the Deputy Attorney General issued a memo demanding a halt to "witch hunts" against non-incubator crypto tools. However, behind the seemingly calm surface, an intense covert battle is underway between the SDNY#美司法部抛售比特币 and Washington over "who is the real decision-maker."

Recently, a asset liquidation document was leaked like a timed bomb, revealing vulnerabilities in the Bitcoin strategic defense adopted by the Trump administration—U.S. law enforcement(USMS), under the instructions of the New York Attorney General, sold Bitcoin seized from the developers of Samourai Wallet. This is not just asset liquidation but a direct challenge to Executive Order No. 14233 signed by Trump on March 6, 2025.
57.55 Bitcoins Disappeared
The story centers on an undisclosed asset liquidation agreement. Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill agreed in their plea deals to forfeit approximately $6.3 million worth of Bitcoin. According to Arkham Intel’s tracking, on November 3, 2025, about 57.55 Bitcoin were transferred from the relevant address. Instead of being sent to the newly established “U.S. Bitcoin Strategic Reserve(SBR)” account as expected, the coins went directly into the Cb Prime address. Subsequently, the balance was cleared to zero. This means: the Bitcoin was sold.
For most, this appears to be a routine legal procedure. But in the political context of 2026, this act carries a highly provocative meaning. Because, according to Executive Order No. 14233(EO 14233) signed by Trump, Bitcoin seized through criminal or civil proceedings is explicitly called “Government Bitcoin”(Government Bitcoin). The order clearly states: “Must not be sold,” and should be preserved as part of the national strategic reserve.
“Claiming ‘Sovereignty’ in the New York Region”
Why could these Bitcoins be sold under the presidential order?
A region called the “Sovereign Zone of New York” must be mentioned—that is, the SDNY(.
SDNY is extremely unique within the U.S. judicial system. Although it officially falls under the Department of Justice, it is known for its independence and toughness, sometimes even rebellious. In this sale operation, SDNY seems to be sending a message to the outside world: Washington’s orders are orders, and Manhattan’s rules are rules.
They even ignored a memo issued on April 7, 2025, by Deputy Attorney General Todd Blanche, which explicitly states that “the Department of Justice will no longer pursue activities of cryptocurrency exchanges, obfuscation services, and non-incubator wallets’ end users.”
However, SDNY is still investigating the Samourai case and continues to pursue developer Roman Storm of Tornado Cash. Even with senior officials at FinCEN)FinCEN( hinting that Samourai’s non-incubator nature does not qualify as a transfer institution, SDNY persists in its stance.
The Gray Area of Law and the Arrogance of Power
If SDNY wants to justify its actions, it can certainly find legal loopholes. According to legal sources, the basis for forfeiture is U.S. Code Title 18, Section 982)US Code(. While the law states that forfeited property belongs to the United States, it does not explicitly require converting it into cash.
This is the core contradiction: the law grants prosecutors discretion, but the presidential order imposes limits on that discretion.
SDNY chose to exercise discretion and convert Bitcoin into USD, which can technically be seen as a “legitimate practice,” but politically, it is a direct negation of the government’s intent. They did not consider these as strategic assets but hurried to liquidate “prohibited assets” before they entered the national treasury.
The outcome remains uncertain: what’s next for the President?
This incident has put Trump in an awkward position. On one hand, he considers pardoning Samourai developer Rodriguez to show support for non-incubator technology; on the other hand, his subordinate agencies are selling Bitcoin that should belong to the state, watching it all happen. If Trump truly pardons Rodriguez and orders an investigation into the sale process, it would be a direct conflict between executive power and the judicial system.
Is the battle over Bitcoin truly over? That’s the question all cryptocurrency supporters are asking.
Despite a new president in the White House, the massive federal government machinery and the complex network known as the “deep state” still hold a hostile attitude toward cryptocurrencies.
The SDNY sale involved not just 57.55 Bitcoin but also a loss of market trust in “political consistency.”
This incident serves as a wake-up call: on the road to building a national Bitcoin reserve, the biggest obstacle may not be market volatility but internal resistance and division within institutions. For Trump, establishing a true Bitcoin strategic reserve might first require dealing with those “outside, uncompliant prosecutors.”