The United States Marshals Service (USMS) has chosen Coinbase Prime to hold certain digital assets as part of its responsibility for asset forfeiture, according to a notice released on July 1. Coinbase, a cryptocurrency exchange, has been selected by the USMS to provide custody and advanced trading services for large-cap digital assets. The exchange will centrally manage these assets in support of the federal agency, which occasionally takes custody of cryptocurrencies seized by the Department of Justice.
This decision comes after an audit conducted by the Office of the Inspector General for the Justice Department in 2022, which highlighted the challenges faced by the Marshals Service in managing and tracking cryptocurrency. In response, the USMS began exploring contracts with companies to provide crypto custody services in March.
Coinbase has previously been utilized by law enforcement agencies to hold or sell seized cryptocurrencies as part of criminal investigations. The US Marshals Service has held assets associated with the defunct cryptocurrency exchange FTX and the infamous Silk Road platform. Government records indicate that Coinbase Prime received over $32 million for the USMS contract.
In related news, UK authorities will soon have fewer restrictions when seizing cryptocurrencies. Meanwhile, Coinbase is currently involved in a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June 2023. The SEC’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.
Additionally, Coinbase 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, law enforcement agencies in the United States are intensifying their efforts to combat crypto-related crimes.