US Marshals Signed A Contract With BitGo To Manage Seized BTC

The US Marshals signed a contract with BitGo worth $4.5 million in order to manage seized Bitcoin as we can see more in our latest Bitcoin news today.

The US Marshals signed a contract with BitGo but the duration of the contract hasn’t been disclosed. The crypto brokerage BitGo signed a contract with the US Marshals Service to help the agency in storing and selling cryptocurrencies seized from criminal investigations. The exact duration of the deal which is now worth over $4.5 million, hasn’t been disclosed but the Palo Alto company is expected to manage thousands of millions of dollars inf forfeited cryptocurrencies.

USMS announced initially that it was looking for a company to provide a full range of virtual currency management and disposal services. As per the agency, these activities include accounting, wallet creation, audit compliance, management as well as the generation and safekeeping of encrypted private keys. USMS auctioned off BTC seized from criminals since 2014 and in one such auction, venture capitalist Tim Draper purchased over 30,000 BTC which were confiscated from the silk road darknet.

In November last year, the Department of Justice announced the seizure of another $1 billion worth of BTC Linked to Silk Road and sued for the forfeiture of the funds. As per the US Marshals BTC auction, a website that was set up by Casa CEO James Lopp to track the amount of BTC that is auctioned off by the US Authorities, the value currently stands at 185,230 BTC or $8.94 billion in today’s prices.

Founded in 2013, BitGo holds more than $30 billion in assets under custody and the company secured a license from the New York State Department of the Financial Services in order to set up a crypto trust allowing it to start serving institutional investors from Wall Street. Other companies that have similar licenses include Gemini, Coinbase, Paxos, Bakkt, Fidelity, and NYDIG.

As reported recently, The major American digital asset custody and security company BitGo receives a New York Trust license from the New York State Department of Financial Services and the new charter will enable the company to provide custodial services for institutional clients in the state that want to make bigger investments in crypto in compliance with the local regulations. With this new license, the company will provide Know Your Customer and AML services and will offer offline cryptographic keys in a bank-grade vault.