- Reports suggest forfeited U.S. bitcoin may have been sold despite an executive order to hold it.
- Senator Lummis warns mixed signals could weaken U.S. crypto strategy.
- Bitcoin rallied to nearly $94,000 despite weak manufacturing data.
Bitcoin surged to a fresh 2026 high near $94,000 this week, extending its recovery despite weak U.S. manufacturing data. Yet even as prices climb and institutional demand shows signs of life, a growing controversy in Washington is raising uncomfortable questions about how seriously the U.S. government is treating its own Bitcoin strategy.
At the center of the debate is whether federal agencies are quietly selling Bitcoin that the White House has explicitly ordered to be preserved.
Alleged Bitcoin Sale Sparks Policy Concerns
According to recent reporting, Bitcoin forfeited in the Samourai Wallet case may have already been liquidated by the U.S. Marshals Service. Developers Keonne Rodriguez and William Lonergan Hill agreed to forfeit roughly 57.5 BTC—worth about $6.3 million at the time—as part of a Department of Justice plea agreement in late 2025.
Blockchain records indicate the funds were transferred soon after to a Coinbase Prime address typically used for institutional transactions. That address now shows no remaining balance, fueling speculation that the bitcoin was sold rather than retained.
If confirmed, the move would appear to conflict with Executive Order 14233, which states that Bitcoin obtained through forfeiture should be held as part of a Strategic Bitcoin Reserve and not sold.
Lawmakers Question Mixed Signals on Crypto Policy
Senator Cynthia Lummis has publicly challenged the situation, asking why federal agencies would continue liquidating bitcoin while the administration promotes long-term BTC accumulation. She warned that inconsistent execution risks undermining U.S. credibility at a time when other nations are increasingly treating bitcoin as a strategic asset.
The concern is not just financial. Critics argue that ignoring clear directives weakens trust in U.S. crypto policy and sends confusing signals to markets already watching Washington closely for regulatory clarity.
Bitcoin Rallies Despite Weak Economic Data
The policy debate comes as Bitcoin continues to show resilience. BTC rose more than 3% on the day, briefly touching $94,000 even as U.S. manufacturing data confirmed a tenth straight month of contraction. The ISM Manufacturing PMI remained below 50, signaling ongoing economic strain.
Despite the macro headwinds, risk appetite held firm. Analysts noted improving structural indicators, better regulatory clarity in the U.S., and renewed domestic demand. The Coinbase Bitcoin Premium Index turned positive in early January after hitting a multi-month low near $88,000.
Bitcoin’s advance also coincided with gains across equities and precious metals, suggesting broader confidence among investors.
Also Read: 600,000 Bitcoin at Stake: Venezuela’s Hidden BTC Could Reshape Supply
As Bitcoin strengthens and geopolitical competition over digital assets intensifies, the alleged sale of forfeited BTC raises a fundamental question: can the U.S. afford to treat bitcoin as both a strategic reserve and a disposable asset?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
