DOJ Sells 57 Bitcoin Despite Trump’s Executive Order Requiring Strategic Reserve

TL;DR:

The Southern District of New York liquidated $6. 3 million in Bitcoin forfeited by Samourai Wallet developers on November 3, directly contradicting Executive Order 14233 signed in March 2025 requiring all forfeited Bitcoin be preserved for the Strategic Bitcoin Reserve.

Key Points:

Background:

Cryptocurrency liquidations occur when leveraged trading positions are automatically closed by exchanges due to insufficient margin. Large-scale liquidation events, often called liquidation cascades, can trigger dramatic price movements as positions are forcefully sold or bought back.

Why It Matters:

Liquidation events reveal the extent of leveraged positions in the market and can cause or accelerate significant price volatility. Understanding liquidation dynamics helps traders assess market risk and potential volatility triggers in cryptocurrency markets.