US Senator Cynthia Lummis on Tuesday pushed back after reports that the US Department of Justice moved and likely sold seized Bitcoin that some lawmakers expected to be held as a national asset.
According to on-chain tracking and multiple news outlets, about 57.55 BTC, roughly $6.3 million, was sent to a Coinbase Prime account and the receiving wallet later showed a zero balance, a sign the coins were probably liquidated.
Senator Lummis Raises Alarm
Based on reports, Senator Cynthia Lummis said she was “deeply concerned” that the transfer ran counter to a presidential directive issued earlier.
The directive, Executive Order 14233 signed in March 2025, sets out a plan to create a US Strategic Bitcoin Reserve and calls for seized Bitcoin to be held rather than sold.
Lummis, who chairs a Senate subcommittee on digital assets, questioned why seized coins were moved to an exchange custody account instead of being placed in reserve.
Why is the U.S. gov still liquidating bitcoin when @POTUS explicitly directed these assets be preserved for our Strategic Bitcoin Reserve? We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report. https://t.co/XW5WxsfliA
— Senator Cynthia Lummis (@SenLummis) January 6, 2026
On-Chain Moves Point To Sale
Blockchain analysts flagged the movement after addresses tied to the seizure were traced to Coinbase Prime. Reports show the Coinbase address ended with a zero balance shortly after the transfer, which many observers read as an on-chain signal that the assets were sold.
Based on reports, the transfer involved digital assets seized from defendants linked to a recent criminal case, and the US Marshals Service executed the order from the Justice Department to move the coins.
Market Reaction And Numbers
The market showed a small reaction around the time of the reported sale. Bitcoin’s price dipped slightly from about $94,760 to near $93,600 at one point, according to price snapshots cited by news sites.
The said number of BTC is a small fraction of total circulating supply, but the trade drew attention because of the policy questions it raised and the political backdrop of a national reserve plan.
Questions About Policy And The Reserve
Lawmakers and crypto policy watchers now want clearer answers about when and how seized crypto is converted to cash. Reports have called for the Justice Department to explain its decision-making and to clarify whether current administration guidance requires holding seized Bitcoin for the Strategic Reserve.
Senator Lummis has pushed for formal rules and possible legislation that would prevent similar sales in the future.
So far, public statements from the Justice Department and the US Marshals Service have been limited in the public record, while Lummis and other proponents of the reserve have pressed for transparency.
Based on reports, some legal experts argue the government has discretion over forfeited property, while others say the new executive directive should reshape that practice.
Featured image from Pexels, chart from TradingView
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