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Bitgo Chosen to Handle Seized Cryptocurrencies for the US Marshals Service

04/23/2021
Bitgo Chosen to Manage Seized Cryptocurrencies for the US Marshals Service

The U.S. Marshals Service has revealed a contract exhibiting the crypto custodian Bitgo has been chosen to handle regulation enforcement’s seized bitcoin acquired via prison forfeiture. The contracted deal is $4.5 million for the storage, upkeep, and disposal of cryptocurrencies in accordance with paperwork launched on Wednesday.

USMS Pens a Deal With Bitgo

Over the last ten years, the U.S. authorities has seized a considerable quantity of bitcoin (BTC) and different digital property from prison forfeiture instances. Historically, the U.S. Marshals Service (USMS) has been answerable for these funds stemming from high-profile instances just like the Silk Highway market investigation.

Since 2019, the USMS has been seeking a recruit or a custodian that may handle the crypto property seized by the U.S. authorities. The federal government entity revealed one other providing on April 24, 2020, for a contract value $4.5 million.

“The US Marshals Service (USMS) has a requirement for storage, upkeep, and disposal of seized/forfeited digital forex,” the USMC’s authentic solicitation notes. “The aim of this contract is to offer the total vary of digital forex administration and disposal companies. This contains however just isn’t restricted to such actions as accounting, buyer administration, audit compliance, managing blockchain forks, pockets creation and administration, non-public encryption key technology and safekeeping, backup and restoration of personal encryption key materials, airdrops, and so forth., in addition to future actions related to the digital forex forfeiture course of.”

Over $4.5 Million for Managing Crypto Seized in Prison Forfeiture

On April 21, 2021, the contract was awarded to Bitgo, the digital asset belief firm and safety firm, headquartered in Palo Alto. The size of the contract has not been disclosed within the contract filings. Previous to Bitgo’s partnership with the regulation enforcement company, the USMC, FBI, and Division of Justice dealt with storage and auctions.

Only in the near past, the division revealed it had seized over $1 billion in bitcoin from the Silk Highway market. The prison forfeiture stemmed from an individual dubbed “Particular person X” and it’s assumed that the individual could also be one of many rogue brokers who received caught stealing bitcoin in the course of the investigation.

The corporate based by Mike Belshe and Ben Davenport in 2013 has grown a terrific deal since Bitgo’s inception. The agency already manages billions of {dollars} value of crypto property and is the custodian for the Wrapped Bitcoin (WBTC) venture as properly. The BTC held in custody for the WBTC venture is roughly 156,087 BTC in accordance with Dune Analytics stats.

The cope with the USMS might even see Bitgo coping with a major sum of cryptocurrencies from ill-gotten features going ahead. The Palo Alto firm will get $4,549,672 for coping with the U.S. authorities regulation enforcement company and assembly the contract necessities.

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