All the bitcoin held by the U.S. authorities has come underneath scrutiny after allegations surfaced that tens of tens of millions of {dollars} in seized crypto have been stolen by insider entry at a federal custody contractor.
Blockchain investigator ZachXBT alleged over the weekend that greater than $40 million in digital property was siphoned from wallets linked to the U.S. Marshals Service (USMS), reportedly by the son of an government at a agency contracted to handle seized crypto.
The alleged theft facilities on Command Providers & Assist (CMDSS), a Virginia-based expertise agency awarded a USMS contract in October 2024 to handle and get rid of sure classes of seized digital property.
These property embrace crypto not supported by main exchanges and tied to high-profile prison circumstances, together with funds seized from the 2016 Bitfinex hack.
In line with ZachXBT, a person recognized on-line as “Lick,” whom he claims is John Daghita, gained entry to government-controlled wallets by insider channels. ZachXBT has additional alleged that Daghita is the son of Dean Daghita, CMDSS’s president and chief government.
The investigation started after a recorded dispute in a non-public Telegram chat surfaced on-line. Through the alternate, the person screen-shared a pockets exhibiting tens of millions of {dollars} in crypto and appeared to maneuver funds in actual time.
On-chain evaluation later linked these wallets to addresses recognized to carry government-seized property.
A battle of curiosity involving U.S. bitcoin
One transaction path cited by ZachXBT factors to a authorities deal with that acquired roughly $24.9 million in bitcoin tied to Bitfinex-related seizures earlier in 2024.
Further blockchain information means that round $20 million was faraway from USMS-linked wallets in October 2024. Most of these funds have been returned inside a day, although about $700,000 routed by prompt exchanges was not recovered.
ZachXBT estimates that complete suspected thefts might exceed $90 million when accounting for different pockets exercise noticed in late 2025. Among the funds stay in compromised wallets, elevating issues that additional losses might happen.
Neither the U.S. Marshals Service nor CMDSS has issued a public assertion addressing the allegations.
Rightfully so, the investigation has renewed criticism on how the U.S. authorities manages its rising stockpile of seized crypto — particularly its bitcoin.
David Bailey, CEO of bitcoin-focused agency Nakamoto, posted on X after the report, “The son of the CEO of the corporate employed by the US Marshalls to safeguard the nation’s Bitcoin, stole $40m from it and now seems to be working. Treasury should safe the non-public keys from the Justice Division ASAP earlier than extra is stolen.”
The U.S. authorities holds an enormous quantity of Bitcoin seized by legislation enforcement actions, with some blockchain analytics estimating roughly 198,000 BTC underneath federal management with others projecting greater than 300,000 BTC, value tens of billions of {dollars}.
If insiders can allegedly transfer tens of millions from custodial wallets with minimal detection, it suggests present custody practices might depart parts of the federal government’s Bitcoin reserves uncovered.
Earlier reviews have discovered that the Marshals Service relied on handbook monitoring methods and struggled to supply exact estimates of its crypto holdings. CMDSS’s contract award additionally confronted a protest in 2024 from a competing agency, which raised issues about licensing and potential conflicts of curiosity.
Did the USA promote bitcoin destined for the Strategic Bitcoin Reserve?
Earlier this yr, journalist Frank Corva revealed an investigation exploring the truth that prosecutors within the Southern District of New York and the U.S. Marshals Service might have bought bitcoin forfeited within the Samourai Pockets case, doubtlessly in violation of President Trump’s Govt Order 14233, which dictates seized bitcoin be held within the U.S. Strategic Bitcoin Reserve fairly than liquidated.
There was on-chain proof exhibiting 57.55 BTC tied to the Samourai plea settlement transferring by a Coinbase Prime deal with and later exhibiting a zero stability, elevating questions on whether or not the property have been improperly disposed of.
Shortly afterward, U.S. officers denied that any sale occurred, affirming that the Samourai Pockets bitcoin will stay on the federal government’s stability sheet as a part of the Strategic Bitcoin Reserve underneath the chief order.
U.S. officers failed to point out blockchain proof however the reviews and total sentiment relay controversy over how the U.S. handles seized bitcoin. The allegations from ZachXBT additional push this sentiment.
