US Government Investigates $40M Crypto Theft by Contractor’s Son

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US authorities are investigating allegations that a federal contractor unlawfully accessed and transferred over $40 million in seized cryptocurrency from government wallets. The US Marshals Service (USMS) confirmed it is examining claims that digital assets under its custody were illicitly withdrawn. The probe centers on Virginia-based technology firm Command Services and Support (CMDSS), contracted by USMS to manage confiscated crypto assets. Blockchain researcher Zack XBT alleges that John “Leak” Daghita, son of CMDSS’s president and CEO, exploited internal access to move funds for personal use. Zack XBT reported the suspicious activity to officials and linked several wallet addresses to government-held assets. Evidence includes a private Telegram chat where “Leak” demonstrated transferring millions in crypto from wallets tied to major past seizures, including funds from the 2016 Bitfinex hack. CMDSS secured its contract with USMS in October 2024 to oversee seized digital assets, encompassing cryptocurrencies not listed on major exchanges. Investigators found that John Daghita held approximately 12,540 Ether worth millions in a wallet, some of which was returned to a government-controlled account, though a portion was moved through exchanges and remains unrecovered. This incident raises concerns about the safeguarding of government crypto holdings, especially as the US maintains hundreds of thousands of bitcoins valued in the billions. The allegations intensify scrutiny over the management and security of seized digital assets following criticism in recent years.

Source: bitcoinmagazine