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U.S. Sen. Cynthia Lummis pushed back Tuesday after reports that the U.S. Justice Department moved and certain sold seized Bitcoin, which some lawmakers expected could be held as a national asset.
According to on-chain tracking and multiple news outlets, about 57.55 BTC, about $6.3 million, was sent to a Coinbase Prime account and the receiving wallet later showed a zero balance, an indication that the coins were likely liquidated.
Senator Lummis is sounding the alarm
Senator Cynthia Lummis reportedly said she was “deeply concerned” that the transfer contradicted a previously issued presidential directive.
Executive Order 14233, signed in March 2025, lays out a plan to create a strategic Bitcoin reserve within the United States and requires that seized Bitcoins be kept and never sold.
Lummis, chairman of a Senate digital assets subcommittee, questioned why seized coins were moved to an exchange depository slightly than placed in reserve.
Why is the US government still liquidating Bitcoin despite @POTUS specifically directing to preserve these assets for our strategic Bitcoin reserve? We cannot afford to waste these strategic assets while other nations accumulate Bitcoin. I’m deeply concerned about this report. https://t.co/XW5WxsfliA
— Senator Cynthia Lummis (@senlummis) January 6
On-chain moves point-to-sale
Blockchain analysts reported the move after addresses related to the seizure were traced to Coinbase Prime. The Coinbase address reportedly ended with a zero balance shortly after the transfer, which many observers interpreted as an on-chain signal that the assets were being sold.
The transfer reportedly involved digital assets seized from defendants in reference to a current criminal case, and the US Marshals Service was carrying out the Department of Justice's order to transfer the coins.
BTCUSD is currently trading at $93,708. Chart: TradingView
Market response and numbers
The market showed a slight response on the time of the reported sale. According to cost snapshots cited by news sites, the value of Bitcoin fell barely at one point from around $94,760 to almost $93,600.
The said amount of BTC represents a small fraction of the overall circulating supply, however the trade attracted attention due to the political questions it raised and the political backdrop of a national reserve plan.
Questions about politics and the reserve
Lawmakers and crypto policy observers now want clearer answers about when and the way confiscated crypto will likely be converted into money. Reports called on the Justice Department to elucidate its decision-making and make clear whether current government policies require confiscated Bitcoins to be held for strategic reserve.
Senator Lummis has pushed for formal rules and possible laws that will prevent similar sales in the long run.
So far, public statements from the Justice Department and the U.S. Marshals Service have been limited to the general public, while Lummis and other reserve advocates have pushed for transparency.
Based on reports, some legal experts argue that the federal government has discretion over forfeited property, while others consider the brand new executive directive should reshape the practice.
Featured image from Pexels, chart from TradingView
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