The United States Marshals Service (USMS) has chosen Coinbase Prime to handle the custody of specific digital assets as part of its responsibility for asset forfeiture. According to a notice from Coinbase on July 1, the USMS has selected the institutional investing arm of the exchange to provide custody and advanced trading services for large-cap digital assets. Coinbase will centrally manage these assets to support the federal agency, which occasionally takes custody of seized cryptocurrencies by the Department of Justice.
In 2022, the Office of the Inspector General for the Justice Department published the findings of an audit that highlighted the Marshals Service’s difficulties in managing and tracking cryptocurrency. As a result, the USMS reportedly began exploring contracts with companies to provide crypto custody services in March.
Coinbase, a US-based cryptocurrency exchange, has a history of being utilized by law enforcement agencies to hold or sell seized cryptocurrencies as part of criminal investigations. The U.S. Marshals Service has been in possession of assets associated with defunct cryptocurrency exchange FTX and the notorious Silk Road platform. Public records indicate that Coinbase Prime received over $32 million for the USMS contract.
In related news, UK authorities are set to have fewer restrictions when seizing cryptocurrencies. Meanwhile, Coinbase is still involved in a civil lawsuit filed by the U.S. Securities and Exchange Commission in June 2023. The financial regulator’s enforcement approach has faced scrutiny in an election year, with the Supreme Court ruling on June 27 that defendants have the right to a jury trial for securities fraud cases.
Furthermore, the crypto exchange has filed lawsuits against the SEC and the Federal Deposit Insurance Corporation, alleging that these government agencies failed to comply with Freedom of Information Act requests.
Overall, enforcement agencies in the United States are intensifying their efforts to combat crypto-related crimes.