U.S. government confirms: Confiscated Bitcoin will be held long-term and will no longer be liquidated

OnChainDetective · 2026-01-17T00:34:11+00:00

The U.S. Department of Justice confirms that Bitcoin seized from criminal or civil cases will be held long-term rather than auctioned off for liquidation, reflecting a new recognition by the government of Bitcoin as a strategic reserve asset, which has changed digital asset management policies.

OnChainDetective

2026-01-17 00:34:11

Abstract generation in progress

【Chain Wen】An important policy shift worth noting. The U.S. Department of Justice has confirmed a new Bitcoin handling approach—digital assets seized from criminal or civil cases will no longer be auctioned off for liquidation as before, but will be kept on the government’s balance sheet for the long term.

The story behind this begins with the case of Samourai wallet developers Rodriguez and Hill. The two paid over $6 million in Bitcoin to the Department of Justice as part of a plea agreement. Traditionally, these assets would have been sold off by now. But now, the situation has changed.

White House Digital Asset Advisory Committee Executive Director Patrick Witt publicly stated that, according to Executive Order No. 14233, these seized digital assets will be incorporated into the strategic commercial rules framework, meaning—they will remain in the government’s possession.

What does this mean? Simply put, the U.S. government is treating Bitcoin as a strategic reserve asset. Instead of rushing to cash out, it is being considered as part of long-term asset allocation. From a policy perspective, this reflects an official new understanding of Bitcoin’s value and sets new rules for future government digital asset management.

BTC-1,47%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

24 Likes

Reward
24
8
Repost
Share

Comment

0/400

FantasyGuardian

· 01-19 15:57

Whoa, the government is also starting to hoard coins? Are you serious haha

View OriginalReply0

BrokeBeans

· 01-19 03:11

Oh no, has the US government realized the truth? Are they no longer rushing to sell off Bitcoin and instead stockpiling?

View OriginalReply0

MiningDisasterSurvivor

· 01-18 16:18

I've been through it all. The US government's move is essentially an indirect acknowledgment that BTC is an asset. Basically, it's another way of saying they're bottom-fishing. What used to be called law enforcement during auctions and liquidations is now called strategic positioning when held long-term. They've really learned our project's jargon.

View OriginalReply0

¯\_(ツ)_/¯

· 01-17 01:04

Whoa, the government is starting to hoard coins? Is this a sign of recognizing BTC's value? Haha

View OriginalReply0

StableCoinKaren

· 01-17 01:04

Wow, the US government has directly changed its stance? Isn't this essentially an indirect acknowledgment that Bitcoin has value? They used to be so stubborn...

View OriginalReply0

MelonField

· 01-17 01:04

Wait, the government is no longer selling but hoarding coins? Are they learning from us haha --- The US government finally gets it, hodl is the right way --- Wow, from liquidation to strategic holding, this shift is quite big --- Basically, the US government is starting to believe in Bitcoin's long-term value, this signal is quite strong --- Confiscated coins are not being sold, kept instead, feels like they're indirectly going long --- Interesting, the government's "Strategic Business Rules Framework" translates to just waiting for appreciation --- With this policy change, it seems Bitcoin's legality has taken another step up

View OriginalReply0

RugPullProphet

· 01-17 00:56

Wait, is the US government starting to hoard coins? Is this serious haha They've really learned to hodl, about time The government is holding long-term now, retail investors are still chasing highs and selling lows, it cracks me up Now the US government has become one of the biggest whales, which is a bit outrageous Officially endorsing the hoarding strategy, what does that imply... don’t they have a clue The US really changed its tone, this signal is way too obvious Just waiting for the day the government changes its policy again, I've seen this trick before

View OriginalReply0

RebaseVictim

· 01-17 00:43

Damn, the US government is starting to hoard coins now? Are they trying to compete with us in bottom-fishing?

View OriginalReply0