ANCHORAGE DIGITAL WILL CUSTODY CRYPTO SEIZED BY US MARSHALS

Last updated: June 19, 2025, 18:40 | Written by: Samson Mow

In a landmark move signaling the increasing institutionalization of cryptocurrency, Anchorage Digital, a leading digital asset platform, has been selected by the U.S.Marshals Service (USMS) to provide custody services for seized and forfeited cryptocurrencies.This momentous decision underscores the growing recognition of digital assets as valuable, albeit sometimes illicit, properties and the need for secure, regulated solutions for their management. Crypto custody bank Anchorage Digital will be providing digital asset services for the United States Marshals Service for seized funds related to federal crimes.The USMS, a critical branch of the Department of Justice, is responsible for tracking down fugitives and managing assets forfeited in federal crimes and criminal operations. The agency has seized and auctioned off over 185K bitcoins so far. The United States Marshals Service (USMS) has selected Anchorage Digital to provide custody for cryptocurrencies seized in criminal cases, the crypto custody firm announced Wednesday. The USMS is one of the primary law enforcement agencies of the U.S. Department of Justice (DOJ).Their collaboration with Anchorage Digital represents a significant step forward in the government's ability to handle the complexities of digital asset forfeiture. The U.S. Marshals Service, a primary law enforcement agency of the Department of Justice (DOJ), has hired a new custodian US Marshals Service Hires Custodian for Seized Cryptocurrencies Over 185K BTC Confiscated, Sold so Far News Bitcoin News - Crypto-401This agreement, likely totaling billions of dollars in digital assets over time, not only highlights Anchorage Digital's robust security protocols and stringent processes but also addresses the USMS's past struggles with managing its growing crypto holdings, which were previously tracked using outdated methods like spreadsheets. Co-founders Diogo M nica and Nathan McCauley cited the Anchorage's stringent processes and procedures as likely factors in the decision from the federal agency. Crypto custody bank Anchorage Digital will be providing digital asset services for the United States Marshals Service for seized funds related to federal crimes.In a Wednesday announcement from Anchorage, the digital asset MoreDiogo Mónica and Nathan McCauley, co-founders of Anchorage Digital, emphasized their firm’s dedication to security and compliance as pivotal factors in securing this prestigious contract.

The U.S.Marshals Service Enters the Digital Asset Era with Anchorage Digital

For over a year, the U.S.Marshals Service meticulously reviewed potential providers before selecting Anchorage Digital for this vital task. Anchorage Digital will custody crypto seized by US Marshals PANews ｜ Co-founders Diogo M nica and Nathan McCauley cited the Anchorage's stringent processes and procedures as likely factors in the decision from the federal agency.This decision reflects the agency's commitment to securing and managing the increasing volume of digital assets seized in various criminal cases. Anchorage Digital will custody crypto seized by US Marshals By Co-founders Diogo M nica and Nathan McCauley cited the Anchorage s stringent processes and procedures as likely factors in the decision from the federal agency.The Asset Forfeiture Division within the USMS confiscates financial assets involved in federal crimes, making the secure custody and responsible management of these assets paramount.

Why Anchorage Digital? The U.S. Marshals Service, one of the primary law enforcement agencies of the Department of Justice, has hired custodian Anchorage Digital for cryptocurrency seized or forfeited in various criminal cases.Stringent Processes and Procedures

According to Anchorage Digital's co-founders, Diogo Mónica and Nathan McCauley, the company's ""stringent processes and procedures"" were likely key factors in the USMS decision.In a space where security breaches and regulatory scrutiny are constant concerns, Anchorage Digital's commitment to compliance and robust security infrastructure sets it apart. Cryptocurrency custodian Anchorage Digital has been chosen by the United States Marshals Service to handle all of the cryptocurrency assets that are seized by the Justice Department andThis meticulous approach ensures that seized cryptocurrencies are handled with the utmost care and accountability, preventing any potential misuse or loss.

What kind of issues did the USMS face before partnering with Anchorage Digital?

Inefficient Tracking: A DOJ Office of Inspector General report highlighted the USMS's struggles with tracking crypto assets, primarily relying on spreadsheets.
Lack of Integration: Digital assets were not easily tracked within the DOJ's Consolidated Asset Tracking System (CATS).

Anchorage Digital's Role: More Than Just Custody

Anchorage Digital's responsibilities extend beyond simply holding seized cryptocurrencies.They will also provide a range of financial services related to these assets, ensuring their proper valuation, accounting, and potential liquidation when authorized by the USMS.This comprehensive approach streamlines the asset forfeiture process, allowing the agency to focus on its core law enforcement duties.

This agreement also allows the USMS to maintain transparency and accountability in the management of seized digital assets, addressing past concerns about tracking and reporting.The use of a dedicated crypto custody solution ensures a more secure and auditable process.

Financial Services Offered

Anchorage Digital's custody services go beyond cold storage.They include:

Secure Storage: Utilizing institutional-grade security protocols.
Valuation: Determining the accurate value of various cryptocurrencies.
Accounting: Maintaining detailed records of all transactions and holdings.
Liquidation: Facilitating the sale of assets when authorized.

The Broader Implications for Cryptocurrency and Law Enforcement

The partnership between the USMS and Anchorage Digital signifies a broader trend of increasing acceptance and integration of cryptocurrency into the traditional financial system.Law enforcement agencies worldwide are grappling with the challenges of tracing, seizing, and managing digital assets used in criminal activities.This collaboration sets a precedent for other government agencies and institutions seeking secure and compliant solutions for handling digital assets.

The choice of Anchorage Digital by the USMS is also a validation of the growing maturity of the crypto custody industry. The USMS has struggled with handling crypto, as a DOJ Office of Inspector General report highlighted last summer. At the time of the report s publication, the Marshals Service was using multiple spreadsheets to manage its crypto, primarily because digital assets like bitcoin aren t easily tracked in a DOJ property management program called the Consolidated Asset Tracking System (CATS).As more institutions enter the space, the demand for reliable and regulated custody solutions will continue to grow.Companies like Anchorage Digital, with their focus on security and compliance, are well-positioned to meet this demand.

What about BitGo?

While Anchorage Digital secured a significant contract with the USMS, it's important to note that they are not the only player in this space. Anchorage Digital, a firm offering institutional custody solutions for crypto assets, announced on July 28th that it had been chosen by US Marshals to custodyFor instance, BitGo has previously secured a contract to custody crypto for the USMS, showcasing the need for multiple service providers to manage the agency's growing digital asset portfolio.

Addressing Common Questions about Crypto Seizures and Custody

The increasing prevalence of cryptocurrency in criminal activities raises several important questions regarding asset seizure and custody. Anchorage will be responsible for custodying and providing financial services related to crypto seized by the U.S. Marshals Service, likely totaling billions of dollars. 0 NEWSHere are some common inquiries and their answers:

What happens to cryptocurrency seized by law enforcement?

When cryptocurrency is seized in criminal cases, it becomes the property of the government.The U.S.Marshals Service is responsible for managing these assets, including securely storing them, accounting for their value, and potentially liquidating them through auctions or other means.

How does the USMS value seized cryptocurrency?

Valuing seized cryptocurrency can be complex due to its volatile nature.The USMS relies on specialized custody providers like Anchorage Digital to provide accurate valuations based on real-time market data and industry best practices. The U.S. Marshals Service (USMS) will be using Anchorage Digital s solution for digital asset custody. The U.S. federal agency took over a year to review and select a provider. Anchorage will work with USMS s Asset Forfeiture Division which confiscates financial assets involved in federal crimes and criminal operations.These valuations are crucial for accounting purposes and for determining the potential proceeds from liquidation.

How is seized cryptocurrency stored securely?

Securing seized cryptocurrency requires robust security measures to prevent theft or loss. Crypto custody bank Anchorage Digital will be providing digital asset services for the United States Marshals Service for seized funds related to federal crimes. In a Wednesday announcement from Anchorage, the digital asset platform said the U.S. Marshals Service, or USMS, seized some amount of digital assets in recent years whichCustody providers like Anchorage Digital utilize institutional-grade security protocols, including multi-signature wallets, cold storage, and strict access controls, to protect these assets.

What happens to the proceeds from the sale of seized cryptocurrency?

The proceeds from the sale of seized cryptocurrency are typically used to fund various government programs, including law enforcement initiatives and victim compensation funds.Asset forfeiture is a vital tool for disrupting criminal enterprises and recovering ill-gotten gains.

Is it possible to track cryptocurrency transactions involved in criminal activities?

While cryptocurrency transactions are often pseudonymous, they are not entirely anonymous. cointelegraph.com: Co-founders Diogo M nica and Nathan McCauley cited the Anchorage's stringent processes and procedures as likely factors in the decision from the federal agency.Blockchain analytics tools can be used to trace the flow of funds and identify potential suspects. The U.S. Marshals Service (USMS), a part of the Department of Justice, is now using Anchorage Digital for the custody of its trove of tainted seized digital assets. In an announcement WednesdayLaw enforcement agencies are increasingly using these tools to investigate crypto-related crimes.

Coinbase Prime and the USMS: A Multi-Provider Approach

While Anchorage Digital has secured a significant contract, the USMS also utilizes other providers for digital asset custody. Anchorage Digital will custody crypto seized by US Marshals 风险提示：央行等十部委发布《关于进一步防范和处置虚拟货币交易炒作风险的通知》,请读者提高风险意识，理性看待区块链。For instance, Coinbase Prime has been employed by the USMS to custody certain digital assets. The U.S. Marshals Service, a branch of the Department of Justice charged with tracking down fugitives, has given a contract worth over $6.6 million to crypto custody firm Anchorage to handle seized digital assets.This multi-provider approach allows the agency to diversify its risk and leverage the specific expertise of different custody providers.

The decision to use multiple custodians likely stems from:

Capacity: The sheer volume of seized assets may necessitate the use of multiple providers.
Specialization: Different custodians may specialize in different types of cryptocurrencies or custody solutions.
Risk Mitigation: Diversifying custody across multiple providers reduces the risk of a single point of failure.

$6.6 Million Contract: A Sign of the Times

The $6.6 million contract awarded to Anchorage Digital by the USMS is a testament to the growing importance of digital asset custody in law enforcement. The U.S. Marshals Service has hired custodian Anchorage Digital to custody cryptocurrency that was seized or forfeited in various criminal cases. The agency has spent more than a yearThis significant investment demonstrates the agency's commitment to properly managing and securing its cryptocurrency holdings. The U.S. Marshals Service (USMS), a part of the Department of Justice, is now using Anchorage Digital for the custody of its trove of tainted seized digital assets. In an announcementThis investment also signals the increasing sophistication of law enforcement's approach to dealing with digital assets.

Breaking down the cost:

While the exact breakdown of the $6.6 million contract isn't publicly available, it likely covers various services, including:

Custody Fees: Charges for secure storage and management of digital assets.
Valuation Services: Fees for determining the accurate value of cryptocurrencies.
Transaction Fees: Costs associated with moving and processing digital assets.
Compliance and Reporting: Expenses related to ensuring regulatory compliance and providing detailed reports to the USMS.

Conclusion: A New Era of Crypto Asset Management

The selection of Anchorage Digital by the U.S. US Marshals Service chooses Anchorage Digital to manage seized or forfeited cryptocurrency Written by Jonathan Greig, Contributor J at 4:40 a.m. PT ShutterstockMarshals Service to custody seized cryptocurrencies marks a pivotal moment in the evolution of digital asset management. The U.S. Marshals Service (USMS), a part of the Department of Justice, is now using Anchorage Digital for the custody of its trove of tainted seized digital assets.This collaboration underscores the increasing acceptance and integration of cryptocurrency into the mainstream financial system, while also highlighting the growing need for secure and compliant custody solutions. Anchorage will be responsible for custodying and providing financial services related to crypto seized by the U.S. Marshals Service, likely totaling billions of dollars. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.As law enforcement agencies continue to grapple with the challenges of tracing and seizing digital assets used in criminal activities, partnerships with reputable custodians like Anchorage Digital will become increasingly vital.

Key takeaways:

Institutionalization of Crypto: Governments are recognizing the need for secure crypto custody solutions.
Importance of Compliance: Stringent processes and procedures are essential for managing seized assets.
Growing Demand for Custody Services: The crypto custody industry is poised for continued growth.

This decision by the USMS not only enhances the agency's ability to manage its growing crypto holdings but also sets a precedent for other government agencies and institutions seeking to navigate the complexities of the digital asset landscape. Anchorage Digital announced on July 28th that it had been chosen by US Marshals to custody seized digital assets. By Nicholas Say J No Comments 4 Mins Read Telegram Twitter LinkedIn WhatsApp Facebook EmailAnchorage Digital's role in this partnership extends beyond simple custody; it signifies a commitment to accountability, transparency, and the responsible management of digital assets within the legal framework. Even if the crypto reserve never sees the light of day, managing and liquidating seized digital assets is a crucial role for the agency, especially since asset forfeiture is used to help fund theThe future of digital asset management is here, and it's being shaped by collaborations like this one.