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- Anchorage Digital is chosen by the US Marshals Service to hold seized digital assets
- The agency has been looking for a custodian and financial services provider for its seized cryptocurrency for more than a year
- Since 2014, the US Marshals Service has seized and sold about 185,000 bitcoins worth more than $7.2 billion
The US Marshals Service, one of the Department of Justice’s principal law enforcement organizations, has hired Anchorage Digital as a custodian for bitcoin confiscated or forfeited in various criminal cases. The US Marshals Service has been looking for a custodian and financial services provider for its seized cryptocurrency for over a year. BitGo, which was acquired by Galaxy Digital in May, had previously been given the contract.
Auction of bitcoin seized from the criminals
For several years, the FBI has been auctioning Bitcoin and other cryptocurrencies seized from criminals. The value of the stolen holdings has skyrocketed as Bitcoin’s price has soared to new highs. The Justice Department, of which the Marshals Service is a component, seized roughly 70,000 Bitcoins worth about $4 billion at current values late last year.
The Asset Forfeiture Division of the agency takes away financial incentives for criminal activity, which might include real estate, art, vehicles, jewelry, and cash. Accounting, client administration, managing blockchain splits, converting token assets into coin assets, and future actions linked with the USMS virtual currency forfeiture procedure are among the services Anchorage will provide.
Diogo Monica views on Crypto start-ups
Anchorage Digital President and co-founder Diogo Monica told CNBC that critical, dependable infrastructure will be the most significant aspect in a robust crypto asset class. Since at least 2014, the agency has auctioned bitcoin. Tim Draper’s bitcoin fortune came from winning the US Marshals Service’s 2014 auction of 30,000 confiscated bitcoins from the now-defunct Silk Road, in addition to investing in dozens of crypto start-ups.
Accounting, client administration, audit compliance, managing blockchain forks, wallet creation, the transformation of token assets into coin assets, and future actions linked with the virtual currency forfeiture process will all be provided by Anchorage Digital, according to the company.
The contract BitGo earned is worth around $4.5 million, and the length of time it will last is unknown. BitGo is one of the largest digital asset custodians, having secured $30 billion in assets in February. In an interview, Pete Najarian, chief revenue officer of BitGo, said, They work hard every day to manage what we feel is the best safe environment for retaining digital assets. They are ecstatic to be collaborating with such a vital agency as the US Marshals Service. Since around 2014, the Marshals Service has seized and sold more than 185,000 bitcoins valued at more than $7.2 billion. In early 2020, it held an auction for 4,040 bitcoins.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
