Authored by Frank Corva via BitcoinMagazine.com,

It seems that the U.S. Marshall Service (USMS) has sold the $6.3 million worth of bitcoin that Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill paid the U.S. Department of Justice (DOJ) as a fee that was part of their guilty plea.

In doing so, it has potentially violated Executive Order (EO) 14233, which mandates that bitcoin acquired via criminal or civil asset forfeiture proceedings should be held as part of the United States’ Strategy Bitcoin Reserve (SBR).

If the Southern District of New York (SDNY), the federal judicial district in which the Samourai case was to be tried, did, in fact, violate EO 14233, it would not be the first time employees of the SDNY have acted in defiance of direction from the federal government.

What Happened to the Bitcoin?

According to a document titled “Asset Liquidation Agreement”, which has been obtained exclusively by Bitcoin Magazine and has not until now been made public, the bitcoin that Rodriguez and Hill forfeited is to be sold — or already has been.

As per the document, the defendants agreed to transfer $6,367,139.69 worth of bitcoin — 57.55353033 bitcoin at the time the final party signed the agreement, which was Assistant United States Attorney Cecilia Vogelon November 3, 2025 — to the USMS.

The bitcoin, which was sent from address bc1q4pntkz06z7xxvdcers09cyjqz5gf8ut4pua22r on November 3, 2025, seems to have bypassed any direct custody by the USMS. Instead, it seems to have been sent directly to Coinbase Prime address 3Lz5ULL7nG7vv6nwc8kNnbjDmSnawKS3n8 (Arkham Intel attributes this address to the brokerage), presumably to be sold.

This Coinbase Prime address currently has a zero balance, indicating that the bitcoin may have already been sold.

Violating Executive Order 14233

If the USMS has sold the forfeited bitcoin, it likely contravened EO 14233, which orders that bitcoin acquired by the U.S. government via criminal forfeiture, termed “Government BTC” in the EO, “shall not be sold” and should be contributed into the U.S. SBR.

If the USMS sold the bitcoin, they did so at their own discretion and not as a legal mandate, which indicates that certain members of the DOJ may still view bitcoin as a taboo asset to be offloaded as opposed to a strategic asset that President Trump has directed government agencies to retain.

Given that the Samourai prosecution originated under the previous administration, which was notoriously hostile toward noncustodial crypto tools and their developers, the decision to ignore EO 14233 and sell the bitcoin despite a mandate from the executive branch fits a pattern of treating bitcoin as something that should be removed from government balance sheets as soon as possible.

Legal Details Regarding the Forfeiture and Liquidation

According to a legal source close to this matter, the Samourai developers’ forfeited their bitcoin under 18 U.S. Code § 982(a)(1), which stipulates that any offense that violates 18 U.S. Code § 1960, the statute that prohibits the operation of unlicensed money transmitting businesses, orders that person to forfeit to the United States any property involved in the offense.

Judging by § 982 and its incorporation of 21 U.S.C. § 853(c), a criminal forfeiture statute that stipulates that “property that is subsequently transferred to a person other than the defendant may be the subject of a special verdict of forfeiture and thereafter shall be ordered forfeited to the United States,” the bitcoin that Rodriguez and Hill forfeited fits the EO’s definition of “Government BTC”.

Neither § 982 nor the incorporated § 853 requires that property that is forfeited as part of a criminal offense be liquidated. Furthermore, the fund forfeiture statutes cited in section three of the EO — 31 U.S.C. § 9705 and 28 U.S.C. § 524(c) — regulate where forfeiture proceeds are deposited and how they may be used; they do not require that forfeited bitcoin be converted to cash rather than held in kind.

The EO also stipulates that “Government BTC” falls under the umbrella of “Government Digital Assets” and states that “the head of each agency shall not sell or otherwise dispose of any Government Digital Assets” except in certain scenarios, none of which apply in the Rodriguez or Hill cases and, in all of which, the U.S. attorney general would play a role in determining what should be done with the forfeited digital assets.

The Sovereign District of New York

When taking EO 14233 and the statutes cited in this article into account, the SDNY seems to have acted in a manner that defies the EO 14233’s mandate to transfer bitcoin obtained via criminal forfeiture to the U.S. SBR.

This would not mark the first time that the SDNY has acted in such a manner. 

The judicial jurisdiction, sometimes colloquially referred to as “Sovereign District of New York,” has earned a reputation for operating independently and unilaterally, despite being part of a federal system.

The fact that the SDNY proceeded with the cases against Rodriguez and Hill as well as the case against Tornado Cash developer Roman Storm, is further evidence of this.

On April 7, 2025, Deputy Attorney General Todd Blanche issued a memo entitled “Ending Regulation By Prosecution” in which he stated “the Department [of Justice] will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users…”

The SDNY seemed to disregard the language in this memo, though, as it proceeded with the Samourai Wallet or Tornado Cash cases.

And when the defense team for Hill and Rodrguez learned as per a Brady request that two high-ranking members of the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) “strongly suggested” that Samourai Wallet wasn’t serving as a money transmitter due to the noncustodial nature of the service, the prosecution proceeded anyway.

When it comes to criminal cases tried within the federal court system, over 90% of defendants are convicted and sentenced, with as little as 0.4% being acquitted some years. And the prosecution for SDNY cases has a reputation for having an even higher win rate.

Rodriguez was aware of these statistics, as well as the fact that Judge Denise Cote, the judge who presided over his and Hill’s cases, has a reputation for harsh sentencing.

He told me as much the morning before he pleaded guilty to the conspiracy to operate an unlicensed money transmitter business charge.

Is the War on Crypto Really Over?

Many Bitcoin and crypto proponents who voted for President Trump in 2024 as well as the crypto industry, which supported the president in his reelection, are now beginning to question whether or not President Trump really does want to see an end to the war on crypto.

For this to happen, the DOJ under President Trump must honor what is mandated in EO 14233 and follow Deputy Attorney General Blanche’s guidance to stop prosecuting developers of noncustodial crypto technology.

To the latter point, President Trump recently stated that he is considering a pardon for Rodriguez.

His pardoning Rodriguez as well having the DOJ look into why it sold the bitcoin that the Samourai developers forfeited would send a signal that the president is quite serious about his pro-Bitcoin and pro-crypto stance.

More steady escalation between US-ally Japan and China has emerged, but things just got much more significant – moving from initial Chinese restrictions on things like seafood or cultural exchange events, to now Beijing announcing an immediate ban on all goods deemed dual use for Tokyo. Some rare earth elements are included in this, which impacts a range of technologies, goods, and services with both civilian and military applications.

Japanese Prime Minister Sanae Takaichi – still relatively early and fresh in her tenure – likely regrets her words from last November before her parliament, where she for the first time ever in Japan’s history suggested the Japanese military could intervene to defend Taiwan from a future Chinese invasion of the self-ruled island. However, the Chinese demand for a full public retraction and apology hasn’t come, which means Beijing is now engaged in more screw-tightening to demonstrate how serious it is.

In unveiling the new punitive measures Tuesday, a spokesperson for China’s Commerce Ministry once again hammered on Takaichi’s “erroneous” comments and that China’s national security and interests must be “safeguarded”.

“These comments constitute a crude interference in China’s internal affairs, seriously violate the one-China principle and are extremely harmful in nature and impact,” the statement said, followed by a warning that any entity or individual which violates the export ban will be held legally accountable. 

These new controls may affect shipments of semiconductors and rare earth materials to Japan’s Self-Defense Forces and defense industry firms – which is without the intent, and signals that greater punishment and damage could be further implemented at any time.

However, the fresh announcement did not identify specific importers subject to the ban, with details not disclosed, and it remaining unknown just how these controls will be implemented or handled.

Beijing in addition to citing national security, described the move as vital to non-proliferation, especially in light of Tokyo’s anti-China stance in the region.

China had already been steadily retaliating through measures related to curbing trade, cultural exchanges, and tourism – coupled with threats of more punitive action to come. There have lately been some serious military ‘close calls’ as well.

As DA Sails notes, “It’s a reminder that export controls are now a frontline geopolitical tool, not just a trade policy.”

China’s overnight announced ‘dual use’ export controls on Japan…

For example, early December saw an incident play out of Japan where Chinese PLA military aircraft locked radar on Japanese fighter jets, helping relations continue to spiral to their lowest point in many years.

All the while, Beijing has kept up its fiery denunciations, making clear there’s “no space” for ambiguity on what China sees as its territory (Taiwan). Previously the foreign ministry has explained, “China has made its serious position clear several times on Japanese Prime Minister Sanae Takaichi’s wrongful remarks on Taiwan.” And: “The remarks seriously violate the spirit of the four political documents between China and Japan, and cause fundamental damage to the political foundation of China-Japan relations.”

Authored by T.J.Muscaro via The Epoch Times,

Nearly 20,000 immigration arrests were made in Florida in 2025, Gov. Ron DeSantis announced during a Jan. 5 press conference highlighting his state’s immigration enforcement standards.

Of that total number, 10,000 arrests were made as part of the Department of Homeland Security’s Operation Tidal Wave, and 7,674 were taken into custody by Florida’s highway patrol officers.

Those arrested included more than 6,300 people with criminal records, including violent and sexual offenses, as well as several hundred of the total 1,200 child predators arrested in the state that year.

It did not include any arrests made by federal agents or self-deportations, which authorities said reached about 1,000 people going through the state’s program alone.

DeSantis held the press conference at Deportation Depot outside Jacksonville, from which authorities said 93 deportation flights carried away 2,926 people in the few months the site was in operation last year.

Deportation Depot followed the establishment of the Alligator Alcatraz detention and deportation center deep in the Everglades.

DeSantis said that both facilities now had a federal immigration judge on site to expedite the deportation process.

He also announced that his administration was awaiting DHS approval to open a third detention and deportation center in North Florida that would be called the “Panhandle Pokey.”

The governor also suggested that a fourth site could open this year in South Florida, but he did not go into details.

DeSantis emphasized that the creation of every facility was meant as a temporary solution to support federal agents who have run out of space to keep illegal immigrants off the streets.

Although it is not clear how temporary they are, DeSantis expressed his hope that the federal government could expand its bed space and eliminate the need for any state intervention.

Dave Kerner (C), executive director of the Florida Department of Highway Safety and Motor Vehicles, describes the state’s collaborative efforts with the federal government in immigration enforcement while speaking at a press conference at Deportation Depot in Sanderson, Fla., on Jan. 5, 2026. Natasha Holt for The Epoch Times

Florida Department of Law Enforcement Commissioner Mark Glass said his department and its partners in the Florida Department of Children and Families were continuing to work with the Trump administration to find the estimated hundreds of thousands of children who were brought into the country unaccompanied.

Florida Department of Agriculture and Consumer Services Commissioner Wilton Simpson announced the Department of Transportation was going to build another major highway checkpoint and close up what he called “a major hole” along the state’s northern border.

“We’re breaking up the fuel thefts,” he said. “We’re breaking up the stolen vehicles, the human trafficking, the illegals that we are catching, not only illegals, but the just bad folks … making a big difference.”

Authorities pointed to Florida’s immigration legislation signed in February 2025, which required all state, county, and local agencies inside and outside of law enforcement to enter into 287(g) agreements and support the Department of Homeland Security’s nationwide crackdown on illegal immigration.

“Every state agency in Florida has made a 287 (g) Task Force arrest,” said Anthony Coker, State Board of Immigration Enforcement executive director.

“I think that it’s unprecedented, number one, but it also speaks to the leadership of our Cabinet and our governor really leading the way on immigration, and the state directors that are buying into it [have] been amazing.”

Coker said that state agency directors and county sheriffs have worked to build personal relationships with federal partners, and they continue to act on their own through self-initiated operations.

“The Florida blueprint of immigration enforcement has been widely recognized as being the gold standard of state-level immigration enforcement,” Coker said. “As we begin 2026, we’re excited for the opportunity to partner with other states and have them see as much success as we have.”

Many of these arrests came from engagements such as traffic stops by the Florida Highway Patrol.

“Is it easy? No,” said Dave Kerner, executive director of the Department of Highway Safety and Motor Vehicles.

“It’s not easy. Is it combative? It’s very combative. I can count at least 10 troopers who have been injured as a result of immigration enforcement operations, and seriously injured.

“But the point is, it can be done.”

The governor said that the enthusiasm for working with the federal government is not felt everywhere across the state, and he said that he is prepared to take action against anyone found “breaching duties.”

Following yesterday’s US Manufacturing ISM survey disappointment, this morning we get yet more soft survey data – this time a look at the Services sector via S&P Global.

The final (December) US Services PMI data was a disappointment, printing 52.5 vs 52.9 expected…

Source: Bloomberg

While the print was a disappointment, it remains above 50 – expansion – but new business inflows rising to the weakest degree in over a year-and-a-half, growth of activity faltered and was the lowest since last April.

Confidence in the outlook also weakened, whilst employment volumes stagnated, failing to rise for the first time since last February.

The S&P Global US Composite PMI recorded 52.7 in December, down from 54.2 in the previous month.

Business activity continued to expand in December, rounding off another quarter of robust growth, but as Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, points out, “the resilience of the US economy is showing signs of cracking.”

“New business placed at services providers showed the smallest rise in some 20 months which, accompanied by the first fall in orders placed at manufacturers for a year, points to a broad-based weakening of demand growth.

“Not only has service sector business activity slowed in response to concerns over order books, with the December surveys signaling the weakest economic expansion since last April, but the number of companies cutting headcounts has exceeded those reporting higher employment for the first time since February.

Optimism is fading…

“We also enter 2026 with future output expectations running much lower than seen at the start of 2025, fueling concerns that December’s slowdown and job market malaise could spill over into the new year.

“Confidence has been dampened principally by uncertainty over government policy and the broader economic outlook, with tariffs and affordability featuring as common threads throughout companies’ more cautious views on their prospects.

Affordability worries are underscored by companies reporting an “increased impact of tariffs on both input costs and selling prices in December,” suggesting we could see the unwelcome combination of slower economic growth and stubbornly high inflation at the start of the new year.

However, Williamson notes that “there is an expectation among many companies that lower interest rates and government policy will start to boost demand again as the new year proceeds.”

Fairfax FinancialStruggling apparel brand Under Armour, founded and currently led by Kevin Plank, has seen its market capitalization collapse after years of strategic missteps, brand erosion, and tough global competition. However, a newly disclosed filing shows that a Canadian financial holding company has taken a sizable stake, alongside a recent, more constructive turnaround call from UBS. This suggests the struggle phase may finally be nearing an inflection point.

Fairfax Financial Holdings disclosed a 22.2% ownership stake in UA Class A common stock in a new Schedule 13D filing, stating that the position was acquired for investment purposes and could be adjusted over time.

Fairfax has become the top shareholder. 

The revelation sent UA shares up 5.5% in pre-market trading in New York. Shares have imploded over the years, falling back to roughly 2010 levels, largely because the brand failed to remain relevant.

In September, UBS analyst Jay Sole wrote to clients, “We think sentiment will turn positive in FY27, driving stock outperformance.”

Just days ago, Sole told clients, “We view UAA as a turnaround stock.”

UAA is back. 

The analyst explained why:

We believe improving sales growth will cause the stock’s valuation to increase: We view UAA as a turnaround stock. We believe UAA will achieve a 25% 5-yr. EPS CAGR and this growth will positively surprise the market. Importantly, we expect UAA to deliver considerable innovation and better leverage its brand name, which should help drive 2nd derivative improvement in the company’s North America revenue growth rate. Our view is an improving North America sales growth rate will boost the stock’s valuation. Our $8 price target is 61% above the current stock price.

Investors materially undervalue the Under Armour brand name, in our view: Under Armour remains one of the world’s best known and liked athletic wear brands. UBS Evidence Lab’s 11th annual global athletic wear survey reinforces our conviction in this view. Survey results indicate Under Armour’s brand name belongs in the same class of brands such as Lululemon, Jordan, Adidas, Puma, On, Hoka, Skechers, and New Balance. The average market cap for these brands which are publicly traded as standalone entities is $19B vs. just $2.1B for UAA. We’re not saying UAA is worth $19B, but rather the valuation differential between UAA and its competitors is far too wide in our view.

Two key survey takeaways:

UAA’s unaided brand awareness, purchase intentions, and attributes are strong. These stats are the main reasons we continue to believe the Under Armour brand name is powerful. Under Armour’s unaided awareness is 4th globally for all athletic apparel brands, trailing only Nike, Adidas, and Puma (Fig. 4). With respect to athletic apparel purchase intentions, UAA ranks 4th among the global brands, behind just Nike, Adidas, and Puma (Fig. 12). Also, global consumers continue to associate Under Armour with phrases such as “high quality products” and “good for doing sports” more than they do for most other brands (Figs. 19-20).

Product innovation will catalyze sales growth acceleration, in our view. Roughly 34% of global survey respondents associated the brand with innovation, but this is down ~500 bps y/y to a 8-yr. low (Fig. 29). This probably explains part of UAA’s recent financial trend. However, we believe UAA’s innovation will improve significantly (link) and this will drive better consumer perceptions as well as more loyalty (Fig. 39), conversion (Fig. 39), and full price selling (Fig. 45).

ZeroHedge Pro subscribers can read the full note in the usual place, where Sole lays out the detailed thesis supporting an $8 price target.