Bitgo Chosen to Manage Seized Cryptocurrencies for the US Marshals Service – Bitcoin News
The U.S. Marshals Service has released a contract under which Bitgo has selected crypto-currencies to handle bitcoins seized in criminal seizures by law enforcement. The contract, worth $4.5 million, covers the storage, maintenance and disposal of cryptocurrencies, according to documents released Wednesday.
USMS signs contract with Bitgo
Over the past decade, the U.S. government has seized significant amounts of bitcoin (BTC) and other digital assets in criminal cases. Traditionally, the U.S. Marshals Service (USMS) has been responsible for these funds, which come from high-profile cases like the Silk Road investigation.
Starting in 2019, the USMS is looking for a recruiter or custodian to manage crypto-currency assets seized by the U.S. government. Another $4.5 million contract offer was made on the 24th. April 2020 published.
The United States Marshals Service (USMS) is to store, preserve and dispose of seized or wrongfully seized virtual currency, according to the USMC’s initial procurement documents. The purpose of this contract is to provide a full range of virtual currency management and disposal services. This includes, but is not limited to, activities such as accounting, customer management, audit compliance, blockchain fork management, wallet creation and management, private encryption key generation and storage, private encryption material backup and recovery, airdrops, etc., as well as future actions related to the expiration process of the virtual currency.
Over $4.5 million to manage cryptographic material seized in criminal seizures
On the 21st. In April 2021, the contract was awarded to Bitgo, a trust and security company based in Palo Alto. The duration of the contract was not specified in the contract offers. Before Bitgo partnered with law enforcement, vaults and auctions were conducted by the USMC, FBI, and Department of Justice.
Just recently, the department discovered that it had seized more than $1 billion in bitcoins from the Silk Road market. The criminal seizure was conducted by a person named Person X, and there is speculation that this person could be one of the crooks caught stealing bitcoins during the investigation.
Bitgo was founded in 2013 by Mike Belshe and Ben Davenport and has grown by leaps and bounds since its inception. The company already manages billions of dollars of crypto assets and is also the administrator of the Bitcoin in the Box project (WBTC). According to statistics from Dune Analytics, the number of BTC held by WBTC is approximately 156,087 BTC.
The USMS operation could result in Bitgo processing a significant amount of cryptocurrencies from illicit profits in the future. The Palo Alto-based company will receive $4,549,672 for its collaboration with a U.S. government law enforcement agency and meeting the requirements of the contract.
What do you think about the U.S. Marshals Service contracting with Bitgo to manage a government agency’s cryptocurrency assets? Let us know what you think in the comments below.
Tags in this story
Ben Davenport, Bitcoin, Bitcoin (BTC), criminal seizure, Department of Justice, DOJ, FBI, Individual X, Mike Belshe, Palo Alto, seizures, Silk Road marketplace, U.S. Marshals Service, U.S. government, USMS
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