U.S. Bitcoin Custody Concerns Rise After Alleged Insider Stole $40 Million In Digital Assets
Concerns about U.S. government Bitcoin custody practices have escalated following allegations of a $40 million theft by an insider at a federal contractor.Summary
U.S. concerns regarding the custody of government-seized Bitcoin have intensified after blockchain investigator ZachXBT alleged that over $40 million in digital assets was stolen. The theft is reportedly linked to an insider, identified as John Daghita (“Lick”), the son of the president and CEO of Command Services & Support (CMDSS), the firm contracted by the U.S. Marshals Service (USMS) to manage seized crypto assets. The investigation began after a private Telegram chat dispute surfaced, showing an individual moving funds that on-chain analysis later connected to government-held wallets, including those containing Bitcoin from the 2016 Bitfinex hack. While some funds were recovered, the incident highlights potential vulnerabilities in the government's custody practices for its massive Bitcoin stockpile, which some estimate exceeds 198,000 BTC. Industry leaders, like Nakamoto CEO David Bailey, have called for the Treasury to secure private keys from the Justice Department immediately. This event compounds existing scrutiny over the government's handling of seized crypto, following previous controversies regarding the potential unauthorized sale of Bitcoin from the Samourai Wallet case.
(Source：Bitcoin Magazine)