Tuesday, May 11, 2021

BitGo signs a contract with the US Marshals Service to sell and store seized crypto.

The Takeaway:

BitGo has signed a contract with the US Marshals Service (USMS) to help the law enforcement agency store and sell seized cryptocurrencies.

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Crypto prime brokerage BitGo has signed a contract with the US Marshals Service (USMS) to help the law enforcement agency store and sell cryptocurrencies seized from criminal investigations. The exact duration of the deal is not disclosed; however, the Palo Alto firm is expected to manage tens of millions of dollars in forfeited cryptocurrencies. The deal between BitGo and USMC is worth over $4.5 million. 

 

BitGo would help auction off seized cryptocurrency. 

The USMS first announced it was looking for a firm to provide “the full range of virtual currency management and disposal services” in April last year. According to the US law enforcement agency, such activities would include accounting, audit compliance, wallet creation, management, and the generation and safekeeping of encrypted private keys. USMC is a part of the US Department of Justice that has been auctioning off Bitcoin seized from criminals since 2014. In one such early auction, venture capitalist billionaire Tim Draper bought over 30,000 BTC that had been confiscated from the now-defunct darknet marketplace Silk Road.

 

BitGo holds over $30 billion in assets under custody.

Later last year, the Department of Justice (DoJ) announced the seizure of an additional $1 billion worth of Bitcoin linked to Silk Road, suing for the forfeiture of the funds. Founded in 2013, BitGo holds over $30 billion in assets under custody. Last month, the crypto firm secured a license from the New York State Department of Financial Services (NYDFS) to set up a crypto trust allowing it to serve institutional investors from Wall Street. Other major crypto firms that have similar licenses include Paxos, Gemini, Coinbase, NYDIG, Bakkt, and Fidelity. The crypto industry has attracted a lot of big names this year following bitcoin’s massive winning rally. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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