- The cryptocurrency exchange announced that the institutional investing division of the government agency had been chosen to offer sophisticated trading and custody services for large-cap digital assets.
The United States Marshals Service (USMS) will use Coinbase Prime to retain some digital assets in custody as part of its asset forfeiture duties.
Coinbase said in a notification dated July 1st that the exchange’s institutional investing division has been chosen by the USMS to offer custody and advanced trading services for large-cap digital assets. The federal agency, which occasionally assumes custody of bitcoin confiscated by the Department of Justice, will be supported by the cryptocurrency exchange, which declared that it would centrally administer the assets.
The results of an audit conducted in 2022 by the Justice Department’s Office of the Inspector General revealed that the Marshals Service has difficulties tracking and controlling cryptocurrencies. According to reports, the USMS started looking into contracts with businesses that offer crypto custody services in March.
Law enforcement organizations have a history of using the American cryptocurrency exchange Coinbase to store or trade cryptocurrency that has been confiscated as part of criminal investigations. Assets connected to the infamous Silk Road website and the now-defunct cryptocurrency exchange FTX have been seized by the U.S. Marshals Service. Government documents show that Coinbase Prime was paid over $32 million for the USMS contract.
The United States Securities and Exchange Commission filed a civil complaint against Coinbase in June 2023. The litigation is still pending. In an election year, the financial regulator’s enforcement strategy has come under examination after the Supreme Court decided on June 27 to allow defendants in securities fraud cases to go to trial with a jury.
In addition, the cryptocurrency exchange sued the Federal Deposit Insurance Corporation and the SEC, claiming that the two government organizations had disregarded Freedom of Information Act demands.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
