U.S. government confirms it did not sell Bitcoin seized from Samourai Wallet

The U.S. authorities has confirmed that it didn’t promote Bitcoin seized from Samourai Pockets. The affirmation addresses earlier claims that the belongings had been liquidated in violation of federal coverage governing forfeited digital belongings.

U.S. DOJ clarification addresses liquidation claims

Patrick Witt, Govt Director of the President’s Council of Advisors for Digital Belongings, stated the Division of Justice [DOJ] has confirmed that the seized Bitcoin “haven’t been liquidated and won’t be liquidated”. 

He added that the belongings will stay on the U.S. authorities’s stability sheet as a part of the Strategic Bitcoin Reserve.

The clarification follows reviews earlier this month suggesting that prosecutors within the Southern District of New York [SDNY] had bought Bitcoin forfeited by builders related to Samourai Pockets. 

The alleged sale probably contradicts Govt Order 14233, which mandates that forfeited Bitcoin be retained quite than bought.

In response to Witt, the DOJ confirmed that the forfeited digital belongings stay within the U.S. authorities’s possession and adjust to the manager order. The assertion instantly counters claims that the Bitcoin had already been liquidated following the Samourai plea settlement.

The DOJ has not publicly detailed operational dealing with of the belongings past confirming they continue to be on the federal government’s stability sheet. 

Nevertheless, the affirmation removes uncertainty round whether or not the seizure resulted in market gross sales or contributed to latest Bitcoin value actions.

On-chain knowledge aligns with U.S. authorities assertion

Impartial blockchain knowledge from Arkham helps the U.S. DOJ’s place. Publicly tracked wallets related to U.S. authorities holdings present no materials discount in Bitcoin balances per a sale linked to the Samourai case.

Supply: Arkham

As of mid-January, on-chain analytics point out the U.S. authorities continues to carry greater than 328,000 BTC, valued at over $31 billion, alongside smaller balances of ether and stablecoins. No irregular outflows tied to the Samourai forfeiture have been noticed.

Why the confusion emerged

Traditionally, the U.S. authorities has bought seized Bitcoin by means of public auctions, significantly in earlier instances resembling Silk Street.

That precedent formed market expectations and led to the belief that newly forfeited Bitcoin would even be liquidated.

Nevertheless, Govt Order 14233 represents a coverage shift, requiring sure seized Bitcoin to be retained as a strategic asset quite than bought.

The Samourai case seems to fall below this up to date framework, marking a departure from earlier forfeiture practices.

For now, the DOJ’s affirmation closes the query of whether or not Samourai-related Bitcoin entered the market.

Ultimate Ideas

• The DOJ’s affirmation resolves claims that Samourai Pockets–associated Bitcoin had been liquidated, reinforcing that the belongings stay held below present federal coverage.
• The episode highlights how legacy expectations round seized Bitcoin gross sales proceed to conflict with the U.S. authorities’s evolving strategy.