US EditionU.S. Marshals Investigate Claim of $40 Million Crypto Theft by Son of Federal Crypto Custodian
Blockchain tracing links multimillion-dollar transfers from government-held seized crypto to an alleged actor tied to the custody contractor; $24.9 million transfer traced in March 2024.
- ZachXBT alleged the son of CMDSS president Dean Daghita siphoned crypto linked to a U.S. Marshals custody contract; the allegations are unadjudicated and CMDSS could not be reached.
- Tracing by blockchain analysts linked transfers to a U.S. government wallet tied to Bitfinex and showed the dispute surfaced during a 'band-for-band' challenge and Telegram chat argument.
- Blockchain records show a U.S. government address sent $24.9 million in March 2024, roughly $23 million consolidated into one wallet, $6.7 million moved to an Ethereum address, and $700,000 lost in instant exchanges.
- Wave Digital Assets protested CMDSS's hiring and licensing, but the GAO denied the protest, while CoinDesk reported the U.S. Marshals Service lacked reliable bitcoin inventory controls.
- Prior scrutiny of the CMDSS contract and ZachXBT's Jan. 23 findings linking 'Lick' to over $90 million in suspected illicit crypto raise renewed oversight questions.
20 Articles
20 Articles
Key news points: An alleged $40M scam from government portfolios exposes serious flaws in crypto custody. The breach is linked to a contractor, showing risks in a fragmented system. The incident undermines the U.S. plan to create a strategic Bitcoin reserve ("Fort Knox digital"). The U.S. government has attempted to implement a historic shift with its Bitcoin holdings for nearly a year, shifting from a disorderly inventory and case by case of cr…
A Wallet Flex Turned Into an On-Chain Trail: ZachXBT Links 'Lick' to US Seizure-Related Funds
A leaked group chat recording captured a threat actor named “John” screensharing wallet balances and moving millions in crypto, according to findings shared by ZachXBT. The prominent on-chain investigator said John, also known as “Lick,” was caught showing off approximately $23 million in crypto during a heated argument with another threat actor in a chat group. “Band for Band” Gone Wrong The dispute reportedly turned into what cybercrime circle…
The Daily: ZachXBT alleges $40M government crypto theft tied to custody contractor’s son, Kraken rolls out ‘DeFi Earn’ for onchain yield, and more
The Daily: ZachXBT alleges $40M government crypto theft tied to custody contractor's son, Kraken rolls out 'DeFi Earn' for onchain yield, and more Quick Take Onchain sleuth ZachXBT alleged that an individual named John Daghita was involved in the theft of more than $40 million in crypto from…
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