US Senator Questions DOJ's Bitcoin Liquidation Amid Strategic Reserve Plans

Concerns Over DOJ's Bitcoin Actions

US Senator Cynthia Lummis has expressed alarm following reports that the US Department of Justice (DOJ) moved and potentially sold seized Bitcoin, which some lawmakers had anticipated would be retained as a national asset.

Seized Bitcoin Movement

According to blockchain tracking and various media reports, approximately 57.55 BTC, valued at around $6.3 million, was transferred to a Coinbase Prime account. The wallet later showed a zero balance, suggesting the Bitcoin was sold.

Senator Lummis's Objection

Senator Lummis voiced her concerns, stating the transfer seemed to contradict Executive Order 14233, signed in March 2025, which outlines the formation of a US Strategic Bitcoin Reserve and specifies that seized Bitcoin should be held.

Blockchain Analysis Suggests Sale

Blockchain analysts noted the transfer after tracing addresses linked to the seizure to Coinbase Prime. Reports indicate the Coinbase address's zero balance post-transfer, interpreted as a sign the assets were sold.

Market Impact and Policy Questions

The market exhibited a minor reaction to the reported sale, with Bitcoin's price dropping slightly from about $94,760 to near $93,600. The sale, though small relative to the total circulating supply, drew attention due to policy implications and the backdrop of a national reserve initiative.

Calls for Clarity

Lawmakers and crypto policy analysts are seeking clearer guidance on the conversion of seized crypto to cash. Reports urge the DOJ to explain its rationale and clarify if the current administration's guidance mandates holding seized Bitcoin for the Strategic Reserve.

Senator Lummis advocates for formal rules or legislation to prevent similar future sales, pushing for transparency from the DOJ and the US Marshals Service. Legal experts are divided, with some asserting government discretion over forfeited property, while others argue the executive directive should redefine this practice.