U.S. Government Cryptocurrency Custody Controversy: Security Risks Behind the $900,000 Theft Case

Source: Yellow Original Title: U.S. Government Crypto Custody Scandal: Contractor’s Son Allegedly Behind $90 Million Theft

Original Link: Blockchain researcher ZachXBT links a threat actor to a theft involving over $90 million in cryptocurrency, assets seized from U.S. government addresses, raising questions about the custody procedures of the U.S. Marshals Service (USMS).

The individual known as “John” or “Lick” is alleged to control wallets associated with assets held by the government, originating from the 2016 Bitfinex hack.

ZachXBT’s investigation was exposed during an online dispute where the suspect demonstrated control over $23 million in crypto assets during a “band for band” presentation.

Blockchain analysis traced the flow of funds through multiple wallets, ultimately pointing to a U.S. government address that received $24.9 million from assets seized in the Bitfinex case in March 2024.

USMS Contract and Custody Risks

Command Services & Support, Inc. (CMDSS) won a contract with the U.S. Department of Justice in October 2024 to manage Level 2-4 seized crypto assets.

This Virginia-based tech services company defeated competitors like Wave Digital Assets in a competitive bidding process.

Dean Daghita is the President of CMDSS, leading the company from Virginia Beach. Government contract documents show the company signed a multi-year agreement (through June 2036) with USMS to help manage and dispose of confiscated digital assets.

Wave Digital Assets subsequently filed an objection to the contract award, claiming CMDSS lacks proper licensing from the U.S. Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

The Government Accountability Office (GAO) dismissed Wave’s objection in March 2025, stating that USMS’s evaluation process was reasonable.

Unverified Access Claims

ZachXBT suggests there may be familial ties between the suspect and the ownership of CMDSS, but this relationship has not been independently verified.

It is currently unclear how the suspect gained access to wallets controlled by the government.

Reports indicate that after ZachXBT’s public investigation, the suspect deleted identifying information from social media accounts and changed their Telegram username. As of January 23, approximately $18.5 million remains in wallet address 0xc7A253fD3C61CF69d043e6184c107dF4E29475B5.

USMS and CMDSS did not respond to inquiries. The Department of Justice has not announced any charges related to the alleged theft.