US government hires Anchorage Digital to handle seized crypto.

In a blog published this week, cryptocurrency custodian Anchorage Digital revealed that it had been chosen by the United States Marshals Service (USMS), a bureau within the US Department of Justice (DOJ), to handle the crypto assets confiscated by law enforcement agencies. The USMS seizes cash, real estate, art, and other assets used in the commission of a crime. Several other countries are also actively regulating cryptocurrencies. 

The USMC seizes crypto assets used in criminal activities.

The USMS seizes cash, real estate, art, and other assets used in the commission of a crime. Amid the growing popularity of Bitcoin (BTC) and other cryptocurrencies, the agency has also been forfeiting digital assets used in criminal activities. In 2019, USMS started to look for a partner that will handle the seized crypto assets from criminal activities. The announcement revealed that Anchorage Digital, the first chartered bank for crypto, has been chosen as USMS’s partner. The San Francisco-based firm said that it would provide the USMS a suite of cryptocurrency services such as custody, liquidation, audit compliance, management of blockchain forks, wallet creation, the transformation of token assets into coin assets, and actions associated with the forfeiture process of cryptocurrencies.

Authorities are concerned about the increasing use of crypto in criminal activities. 

Authorities in the United States and in other countries have raised concerns that cryptocurrencies are being used in criminal activities. In June, the DOJ announced that it seized 63.7 BTC worth $2.3 million at the time. The crypto funds are allegedly the proceeds of a ransom payment made to members of the DarkSide group behind the Colonial Pipeline hacking incident. Regulators across countries have expressed concern over the increasing use of crypto in criminal activities, especially in money laundering and terror financing.