Bitcoin Transfer to Coinbase Sparks Reserve Debate

The U.S. Department of Justice (DOJ) transferred approximately 57.55 Bitcoin through the US Marshals Service (USMS) forfeited from Samourai Wallet co-founders to Coinbase Prime custody on November 3, 2025. Multiple crypto publications initially reported the move as a government sale, potentially violating Executive Order 14233.

🚨NEW: It seems that the SDNY/DOJ has sold the bitcoin that the Samourai devs paid it as part of their plea deal even though Executive Order 14233 mandates that forfeited bitcoin be held in the U.S.’s Strategic Bitcoin Reserve.

And this wasn’t the first time in the Samourai case…

— Frank Corva (@frankcorva) January 5, 2026

However, blockchain analysis reveals no evidence that the Bitcoin was liquidated. The funds remain within Coinbase-controlled infrastructure, raising questions about premature reporting and government asset management protocols.

The forfeited Bitcoin moved from a bech32 address linked to the Samourai case into a Coinbase Prime deposit wallet labeled 3Lz5U. Shortly after, funds transferred to another deposit address labeled 1AaFQ.

Such internal sweeps represent standard custody operations within Coinbase Prime. The process does not independently confirm any liquidation event.

On-Chain Bitcoin Data Contradicts Sale Claims

Blockchain data from Arkham Intelligence shows the Bitcoin consolidated into Coinbase Prime’s broader custody cluster. This infrastructure includes thousands of addresses for settlement, custody, and internal accounting purposes.

The funds never left Coinbase-controlled wallets. No on-chain indicators suggest the Bitcoin moved to external entities or fragmented into trade execution patterns.

A zero balance at the original deposit address only confirms a sweep occurred. Custodial platforms routinely perform such operations for security and organizational purposes.

Confirming whether a sale happened requires court-issued forfeiture orders, USMS asset management records, or Coinbase Prime execution documentation. None of these records appear on-chain.

Executive Order 14233 directs federal agencies to retain forfeited Bitcoin as part of the U.S. Strategic Bitcoin Reserve. The order restricts the sale of “Government BTC” held in designated Treasury accounts.

Whether the Samourai forfeited Bitcoin was formally transferred into Reserve-designated accounts remains unclear. Blockchain data alone cannot determine this administrative classification.

Patrick Witt, Executive Director of the White House President’s Council of Advisors for Digital Assets, confirmed on X that the council is investigating the matter.

Wyoming Senator Cynthia Lummis publicly questioned the situation. She asked why the government continues liquidating Bitcoin when President Trump explicitly ordered preservation for the Strategic Reserve.

Why is the U.S. gov still liquidating bitcoin when @POTUS explicitly directed these assets be preserved for our Strategic Bitcoin Reserve? We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report. https://t.co/XW5WxsfliA

— Senator Cynthia Lummis (@SenLummis) January 6, 2026

Senate Vote Signals End to Government Shutdown

Meanwhile, on Nov 10, 2025, The U.S. Senate advanced a bill to end the government shutdown with a 60-40 vote, boosting market sentiment across risk assets.

The Senate’s bipartisan vote to end the government shutdown provided additional support for Bitcoin prices. President Donald Trump confirmed during a press briefing that the shutdown appears close to ending.

🚨BREAKING: 🇺🇸 President Trump just said it looks like we’re getting very close to the shutdown ending. pic.twitter.com/kRENi1Z3rK

— Ash Crypto (@AshCrypto) November 10, 2025

Senators Angus King, Jeanne Shaheen, and Maggie Hassan brokered the agreement alongside Republican members. The Treasury General Account balance currently sits near $953 billion.

Once government operations resume, Treasury spending will inject this liquidity into the economy. The Federal Reserve prepares to end Quantitative Tightening in December.

Historical patterns show risk-on assets like Bitcoin rally when TGA spending aligns with Fed easing policies. The SEC and legislative operations returning to normal could advance altcoin ETF applications.

Pro-crypto bills may also progress through Congress following the shutdown resolution. Market participants continue monitoring both the forfeiture controversy and broader macroeconomic developments.