On-chain analysts and crypto investigators accused the U.S. Department of Justice (DOJ) of quietly selling approximately 12,500 BTC (worth over $1.2 billion at current prices) from long-held seized wallets — in direct contradiction to President Donald Trump’s December 2025 Executive Order directing all federal agencies to retain confiscated Bitcoin as part of a strategic national reserve.
Blockchain forensics firms including Arkham Intelligence and Chainalysis flagged large outbound transfers from known DOJ-controlled addresses (originally seized from darknet markets and hacking cases) to Coinbase Prime and other institutional trading desks between December 28, 2025, and January 6, 2026. The movements coincided with a brief dip in Bitcoin’s price, fueling speculation that the sales were executed via over-the-counter (OTC) desks to minimize market impact.
Trump’s Executive Order, signed on December 18, 2025, explicitly stated: “No department or agency shall auction, sell, or otherwise dispose of seized Bitcoin holdings without express presidential approval, pending establishment of a U.S. Strategic Bitcoin Reserve.” The order was hailed as a landmark pro-crypto policy, with advocates projecting it would preserve over 210,000 BTC in government custody as a national asset.
Neither the DOJ nor the White House has officially commented on the alleged sales as of January 8. Sources close to the administration claim the transfers were “pre-scheduled legacy auctions” initiated before the EO took effect, while critics on X and crypto forums label it deliberate defiance or bureaucratic sabotage. Pro-Trump accounts are demanding transparency and immediate audits of all government Bitcoin wallets.
The controversy has reignited fierce debates about government Bitcoin holdings, with some calling for full on-chain proof-of-reserves from federal agencies. Bitcoin’s price has held steady above $94,000, showing resilience amid the drama, but sentiment remains volatile as traders watch for further wallet movements.
The story exploded across crypto Twitter starting late January 7, with wallet screenshots, transaction traces, EO text comparisons, and furious call-out threads flooding feeds. Degens, policy watchers, and Bitcoin maximalists are united in demanding answers.
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What’s your take — was the alleged DOJ Bitcoin sale a bureaucratic oversight before Trump’s EO fully took effect, or does it signal deliberate resistance to building a U.S. Strategic Bitcoin Reserve? Drop your thoughts below 👇