In a recent revelation, it has come to notice that the US Marshals Service has signed a $4.5 million contract with the crypto custodian BitGo to assist manage seized Bitcoin. The crypto prime brokerage BitGo has recently signed a contract with the US Marshals Service (USMS) to assist the law enforcement agency store and sell crypto assets seized from criminal proceedings.
BitGo Locks Contract With the US Marshals Service to Manage Bitcoin
Taking the discussion related to the deal further to the duration of the deal, which is worth over $4.5 million is not disclosed. However, it is expected that the firm will be managing tens of millions of dollars in the penalized cryptocurrencies.
The US Marshals Service made an announcement that it was seeking a firm to provide the complete range of virtual currency management and discarding services in April last year.
Moreover, in accordance with the agency, such activities would involve accounting, wallet generation and management, creation and safekeeping of the encrypted private keys, and audit acquiescence.
A part of the US Department of Justice, the USMS has been auctioning off Bitcoin that has been acquired from the criminals since the year 2014.
Tim Draper, a venture capitalist, in one such auction, bought over 30k BTC that had been sequestrated from the now-disused darknet marketplace Silk Road.
US Marshals Bitcoin Auction
In accordance with the US Marshals Bitcoin Auction a website set up by Casa CEO Jameson Lopp to track the amount of BTC auctioned off by the US Authorities, this value currently stands at 185,230 BTC or some $8.94 billion in the prices of today.
BitGo was founded in the year 2013, and it holds over $30 billion in assets under custody.
In addition to this, the company secured a license from the New York State Department of Financial Services (NYSDFS) to set up a crypto trust.
It allows the serving of institutional investors from Wall Street.