U.S. Treasury Confirms All Seized Bitcoin Will Join Strategic Reserve as Debate Over Confiscation Risk Intensifies

Policy Shift on Seized Bitcoin

The United States government has confirmed its intention to retain all seized Bitcoin as part of a Strategic Bitcoin Reserve (SBR) rather than selling confiscated cryptocurrency at auction, marking a significant departure from previous policy.

At the World Economic Forum in Davos, U.S. Treasury Secretary Scott Bessent told journalist Christine Lee that the administration will halt all sales of seized Bitcoin and instead add it to the Strategic Reserve ^[1]. The policy represents what Bessent described as the first step in implementing the SBR: stopping all sales ^[1].

Reserve Established Under Executive Order

The reserve was established under a March 2025 executive order that treats Bitcoin as a long-term strategic asset, comparable to gold or petroleum stockpiles ^[1]. When questioned about Bitcoin seized from developers linked to Tornado Cash in the Southern District of New York and the handling of bitcoin from Samourai Wallet developers, Bessent declined to comment on ongoing litigation but emphasized that any seized Bitcoin would be retained by the federal government after legal damages are resolved ^[1].

"This administration's policy is to add seized Bitcoin to our digital asset reserve," Bessent stated ^[1].

Samourai Wallet Bitcoin Confirmed Unsold

Last week, U.S. officials denied reports that Bitcoin forfeited by Samourai Wallet developers had been sold, confirming the assets will remain part of the Strategic Bitcoin Reserve under Executive Order 14233 ^[1]. Patrick Witt of the President's Council of Advisors for Digital Assets stated that the Department of Justice confirmed the 57.55 BTC, worth roughly $6.3 million, has not and will not be liquidated ^[1].

The clarification came after journalist Frank Corva reported that the U.S. Marshals Service appeared to have sent the 57.55 Bitcoin forfeited by Samourai Wallet developers directly to a Coinbase Prime address, which showed a zero balance, fueling speculation of a sale that would have violated the executive order ^[1].

Broader Regulatory Strategy

Bessent framed the broader strategy as pro-innovation and pro-onshore, with the Treasury seeking to make the United States the "best regulatory regime for digital assets" ^[1]. He cited bipartisan legislation such as the Genius Act, which codifies stablecoin rules at the federal level ^[1].

Billionaire Questions Bitcoin's Seizure Resistance

As the U.S. government builds its Bitcoin reserve through confiscations, Canadian billionaire Frank Giustra has challenged the cryptocurrency community's assumptions about Bitcoin's censorship resistance. In a recent social media post, the 68-year-old argued that "Bitcoin is viel einfacher zu beschlagnahmen als Gold" (Bitcoin is much easier to confiscate than gold) ^[2].

Giustra pointed to the much-discussed Bitcoin reserve of the U.S. government, noting that it consists exclusively of confiscated Bitcoin, which alone should give investors pause ^[2]. He added that Bitcoin purchases are much easier to trace, and when governments become desperate, they choose the path of least resistance ^[2].

The billionaire, known in crypto circles for his sharp criticism of MicroStrategy, also distinguished between Bitcoin and gold as safe havens. "Angesichts der Unsicherheit in Grönland ist der Goldpreis stark gestiegen, während Bitcoin um denselben Prozentsatz gefallen ist" (Given the uncertainty in Greenland, the gold price has risen sharply, while Bitcoin has fallen by the same percentage), he stated, characterizing the precious metal as a safe haven but the cryptocurrency as a risk asset ^[2].

Despite his criticisms, Giustra clarified he has never said Bitcoin would disappear and has always acknowledged it can certainly rise in price ^[2].