Claims that around 57.55 Bitcoin seized under instructions from the US Department of Justice were sold have reignited questions over whether newly established rules for the US Strategic Bitcoin Reserve were properly followed.
According to reported information, the US Marshals Service processed Bitcoin seized in connection with a wallet service case through an institutional custody platform in early November 2025. While it was alleged that these assets were sold, critics argued that such a move would conflict with Executive Order 14233 signed by President Donald Trump, which requires Bitcoin obtained through criminal or civil proceedings to be transferred to the US Strategic Bitcoin Reserve rather than liquidated.
On-chain analyses paint a more cautious picture. The data suggest that although the Bitcoin was transferred to institutional custody wallets, there is no clear on-chain evidence confirming an outright sale. The consolidation of funds between addresses controlled by the same entity may indicate a routine custody process rather than liquidation.
The issue has also drawn attention in Washington. Patrick Witt, Executive Director of the White House Digital Assets Advisory Council, said the matter is under review. Wyoming Senator Cynthia Lummis questioned why the US government would still be liquidating Bitcoin. These developments have renewed debate over how federal agencies handle digital assets and apply the strategic reserve framework.
