U.S. Sen. Cynthia Lummis backed off Tuesday after studies emerged that the U.S. Justice Division was more likely to switch and promote seized bitcoins that some lawmakers had anticipated to be held as nationwide property.
In keeping with on-chain monitoring and a number of information retailers, roughly 57.55 BTC (about $6.3 million) was transferred to a Coinbase Prime account, which later confirmed the receiving pockets's stability was 0, that means the cash had been liquidated.
Senator Lummis sounds the alarm.
In keeping with studies, Senator Cynthia Lummis mentioned she was “deeply involved” that this appointment was opposite to the president's beforehand introduced directive.
Govt Order 14233, signed in March 2025, lays out plans to create a U.S. Strategic Bitcoin Reserve and requires seized Bitcoins to be held somewhat than offered.
Lummis, who chairs the Senate Subcommittee on Digital Belongings, questioned why the seized cash had been moved to change custody accounts somewhat than held in reserve.
Why is the US authorities nonetheless liquidating Bitcoin? @Potters Have you ever explicitly mandated that these property be preserved for strategic Bitcoin reserves? We can’t afford to waste this strategic asset whereas different nations accumulate Bitcoin. I’m deeply involved about this report. https://t.co/XW5WxsfliA
— Senator Cynthia Lummis (@SenLummis) January 6, 2026
Onchain strikes to the purpose of sale
Blockchain analysts pointed to the transfer after the handle concerned within the seizure was traced to Coinbase Prime. In keeping with the report, the Coinbase handle ended up with a zero stability instantly after the switch, which many observers learn as an on-chain sign that the asset had been offered.
In keeping with the report, the switch included digital property seized from defendants concerned in current prison instances, and U.S. Marshals moved the cash executing an order from the Division of Justice.
Market response and figures
There was little response out there across the time the sale was reported. The value of Bitcoin fell barely from round $94,760 to close $93,600 at one level, in line with a worth snapshot cited by the information web site.
Though the variety of BTC talked about is a small portion of the general circulating provide, the coverage points raised and the political backdrop of the Nationwide Reserve Plan have put the transaction within the highlight.
Questions on coverage and reserves
Lawmakers and cryptocurrency coverage watchers now need clearer solutions about when and the way seized cryptocurrencies are transformed to money. In keeping with the report, the Division of Justice ought to clarify its decision-making and make clear whether or not seized bitcoins ought to be held in strategic reserves underneath present administration steering.
Senator Lummis has pushed for formal guidelines and doable laws that would stop related gross sales sooner or later.
To this point, public statements from the Justice Division and U.S. Marshals Service have been restricted to public data, whereas Lummis and different reserve advocates have known as for transparency.
In keeping with the report, some authorized consultants argue that the federal government has discretion over forfeited property, whereas others say new administrative steering ought to change this observe.
Featured picture from Pexels, chart from TradingView
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