The US Marshals Service has published a contract showing that the crypto custodian Bitgo has been chosen to manage the confiscated bitcoin from the law enforcement officers obtained through criminal forfeiture. The contracted deal is $ 4.5 million for the storage, maintenance and disposal of cryptocurrencies according to documents released Wednesday.
USMS pens have a deal with Bitgo
Over the past decade, the US government has seized a significant amount of bitcoin (BTC) and other digital assets from criminal forfeiture. Traditionally, the US Marshals Service (USMS) has been responsible for these funds that grew out of high profile cases such as the Silk Road market research.
Since 2019, the USMS has been looking for a recruit or a custodian who can manage the crypto assets seized by the US government. The government agency published another bid for a $ 4.5 million contract on April 24, 2020.
“The United States Marshals Service (USMS) has a requirement for storage, maintenance, and disposal of seized / forfeited virtual currencies,” the USMC’s original notes. “The purpose of this contract is to provide the full range of virtual currency management and disposal services. This includes, but is not limited to, activities such as accounting, client management, audit compliance, blockchain forks management, wallet creation and management, private encryption key generation and retention, private encryption key material backup and recovery, airdrops , etc. as future actions related to the process of forfeiture of virtual currencies. “
More than $ 4.5 million for managing cryptocurrencies seized in criminal forfeiture
On April 21, 2021, the contract was awarded to Bitgo, the trust and security company for digital assets, headquartered in Palo Alto. The duration of the contract is not disclosed in the contract requests. Prior to Bitgo’s collaboration with the law enforcement agency, the USMC, the FBI, and the Department of Justice handled warehousing and auctions.
Recently, the department revealed that it had taken more than $ 1 billion worth of bitcoin from the Silk Road marketplace. The criminal forfeiture resulted from a person named “Individual X” and the person is believed to be one of the rogue agents caught stealing bitcoin during the investigation.
The company founded by Mike Belshe and Ben Davenport in 2013 has grown tremendously since Bitgo’s inception. The company already manages billions of dollars in crypto assets and is also the custodian of the Wrapped Bitcoin (WBTC) project. The BTC held in custody for the WBTC project is approximately 156,087 BTC according to Dune Analytics statistics.
The deal with the USMS could allow Bitgo to deal with a significant sum of cryptocurrencies from ill-gotten gains in the future. The Palo Alto company will be awarded $ 4,549,672 for dealing with the US government law enforcement agency and meeting contract requirements.
What do you think about the US Marshals Service contracting Bitgo to manage crypto assets for the government entity? Let us know what you think about this topic in the comments section below.
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