Yes—but whether the U.S. government can sell Bitcoin depends on its legal status and which rules apply. Seizing Bitcoin does not automatically make it government property. Historically, the U.S. Marshals Service auctioned forfeited Bitcoin. Since Executive Order 14233 was signed on March 6, 2025, qualifying Bitcoin deposited in the Strategic Bitcoin Reserve is not to be sold, subject to the order’s exceptions and applicable law.
Seized Bitcoin is not necessarily forfeited Bitcoin
Seizure secures an asset while legal proceedings determine what happens to it. It does not, by itself, establish that the government has obtained final title. DOJ policy treats seizure and later disposition as distinct stages. The Strategic Bitcoin Reserve order likewise addresses Bitcoin that has been finally forfeited and deposited in the Reserve, not every Bitcoin in government custody. DOJ Asset Forfeiture Policy Manual; Executive Order 14233.
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Forfeiture may follow a criminal or civil proceeding, or occur in satisfaction of a civil money penalty. Until the relevant legal process establishes the government’s rights, a seized asset may remain subject to proceedings rather than available for ordinary government disposition.
What can happen to Bitcoin after seizure?
The outcome depends on the asset’s procedural status, whether it is Bitcoin or another token, and the legal authority and purpose for any transfer or disposition.
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| Situation | What the rules say |
|---|---|
| Bitcoin is seized or restrained while proceedings are pending | Seizure alone does not establish final forfeiture or authorize treating the asset as government property. DOJ policy separates seizure from disposition. DOJ Asset Forfeiture Policy Manual. |
| Bitcoin is finally forfeited and deposited in the Strategic Bitcoin Reserve | Executive Order 14233 directs that it shall not be sold, subject to the order’s exceptions and applicable law. Executive Order 14233. |
| Assets or proceeds are needed for a stated exception | The order permits specified dispositions, including court-ordered or legally required action, victim returns, law-enforcement operations, equitable sharing and certain statutory requirements. Executive Order 14233. |
| Forfeited cryptocurrency was handled under historical practice | The 2022 DOJ Inspector General audit describes USMS Bitcoin auctions. This records past practice, not a statement that all currently held or forfeited Bitcoin is sold. DOJ Office of Inspector General audit. |
How the U.S. government handled forfeited Bitcoin historically
Before the 2025 order, DOJ disposition policy generally called for forfeited property to be sold promptly if it was not put to official use or transferred. The DOJ Inspector General’s 2022 audit describes the U.S. Marshals Service’s historical use of Bitcoin auctions. Approval, advertising to reach potential buyers, and accumulating enough cryptocurrency to justify an auction could affect how long assets remained in USMS custody. DOJ Asset Forfeiture Program; 2022 DOJ Inspector General audit.
The audit also discussed a planned contractor process intended to liquidate cryptocurrency within five business days after forfeiture. That was a plan reported in the audit, not confirmation of a current service standard. The 2025 policy manual directs prosecutors and agents to check whether USMS or a contractor can store and liquidate the particular cryptocurrency involved. DOJ Asset Forfeiture Policy Manual.
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What the Strategic Bitcoin Reserve order changes
Executive Order 14233, signed March 6, 2025, directs the Treasury Department to establish custodial accounts collectively called the Strategic Bitcoin Reserve. The order provides for the Reserve to be capitalized with qualifying Bitcoin held by Treasury that was finally forfeited through criminal or civil asset forfeiture, or in satisfaction of a civil money penalty, subject to its conditions and statutory needs.
Its operative rule is: “Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives in accordance with applicable law.” That direction applies to Bitcoin deposited in the Reserve; it is not a blanket statement that every cryptocurrency in government custody is covered.
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The order separately establishes a U.S. Digital Asset Stockpile for qualifying non-Bitcoin assets held by Treasury. Its provisions distinguish Reserve Bitcoin from other Government Digital Assets, and they allow Treasury to exercise lawful stewardship over the non-Bitcoin Stockpile subject to applicable law and the order’s exceptions. The Bitcoin no-sale direction should not be extended to all tokens.
Exceptions to the no-sale direction
The order says agencies shall not sell or otherwise dispose of Government Digital Assets except as specified. It does not give agencies unrestricted discretion to sell Bitcoin. The stated exceptions include:
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- Action pursuant to a court order or as required by law.
- Returning assets or proceeds to identifiable and verifiable victims of crime.
- Using assets or proceeds for law-enforcement operations.
- Equitable sharing with state and local law-enforcement partners.
- Releasing assets or proceeds to satisfy requirements under 31 U.S.C. 9705, 28 U.S.C. 524(c), 18 U.S.C. 981 or 21 U.S.C. 881.
The order assigns the relevant determination to the Attorney General or the head of the relevant agency for the listed uses. Whether an exception applies depends on the asset and the legal authority involved; the order also states that implementation must accord with applicable law. Executive Order 14233.
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Custody and liquidation require operational decisions
Crypto assets cannot be handled like ordinary physical property. The DOJ Asset Forfeiture Policy Manual instructs prosecutors and agents to consult USMS about whether the specific cryptocurrency can be stored and liquidated by USMS or a contractor. Before custody transfers, the seizing agency must use a government-controlled self-custodial or cold-storage wallet. Prosecutors must consult the Money Laundering and Asset Recovery Section (MLARS) before seeking an interlocutory sale or pretrial conversion. DOJ Asset Forfeiture Policy Manual.
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What is known about implementation?
The White House’s July 2025 digital-assets report said Treasury had delivered legal and investment considerations for establishing and managing the Reserve and Stockpile, and that Treasury would continue coordinating on next steps. That dated update does not establish that every agency transfer or custody step was complete, and it does not establish a later completion status. July 2025 White House report.
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