Whereabouts of Confiscated Bitcoin Revealed
The Department of Justice has finally provided information on the location of Bitcoin worth $6.37 million.
This Bitcoin was seized from Keon Rodriguez and William Lonergan Hill, co-founders of Samurai Wallet, who pleaded guilty to conspiring to run an unauthorized money transfer business.
This news comes shortly after the U.S. Marshals Service faced criticism for allegedly selling seized Bitcoin.
In August 2025, Rodriguez and Hill admitted guilt in a Southern District of New York courtroom for their involvement in the unauthorized money transfer operation.
As part of their plea deals, they consented to forfeit assets tied to their crimes, which included about 57.55 BTC, valued at around $6.37 million at the time of the transfer.
Prosecutors alleged that they operated a cryptocurrency mixing service and were involved in facilitating over $200 million in illegal transactions. These transactions included money linked to darknet markets, cybercrime, and fraud.
The confiscation of the Bitcoin fell under U.S. Code 982, which allows for criminal forfeiture in cases of money laundering and unauthorized transfers, as per court documents.
The handling of these seized Bitcoins by U.S. authorities has come under significant scrutiny following reports suggesting the assets might have been sold, leading to conflicting narratives.
Bitcoin Magazine referred to court documents and blockchain data that imply the confiscated Bitcoins could have been transferred and sold, contrary to a White House directive that mandates these assets remain in the U.S. Strategic Bitcoin Reserve.
The U.S. Marshals Service has denied any sales of the Bitcoins in question. In a statement to DL News, they claimed, “We do not sell the Bitcoins referenced,” expressing confusion over how Bitcoin Magazine obtained their information.
The Marshals Service added that the liquidation of virtual currencies requires multiple layers of approval, and only those assets that align with criteria set under Executive Order 14233 can be sold.
On January 16th, Patrick Witt, the executive director of the President’s Advisory Council on Digital Assets, shared an update from the DOJ.
“Update: Pursuant to EO 14233, we have received confirmation from the Department of Justice that the digital assets confiscated by Samourai Wallet have not yet been and will not be liquidated.”
