The US government has seized large amounts of bitcoin and digital assets in the crackdown on hackers. The US Marshals Service announced a partnership with cryptocurrency exchange Coinbase to protect and trade its large digital asset portfolio. Coinbase announced in a statement that the Department of Justice is working with Coinbase Prime to provide custody and advanced trading services for the institution's 'tier one' digital assets.
According to a press release from Coinbase, the US Department of Justice conducted a competitive diligence investigation, assessing a range of solutions and ultimately selecting Coinbase because of our strong track record and ability to securely provide institutional-grade crypto services at scale.
(Source: Twitter)
The US Department of Justice has requested management and disposal of a large amount of 'tier one' (Class 1) cryptocurrencies, and Coinbase is most likely to be the choice of the Department of Justice due to its long history of collaboration with law enforcement agencies.
According to the US Marshals Service, the Coinbase contract will also simplify the custody, management and disposal process of cryptocurrency assets. This cooperation also diversifies the types of cryptocurrency assets that the government can manage and dispose of under the forfeiture plan.
Coinbase has stood out because of its strong security record and institutional-grade cryptocurrency service capabilities. Since its launch three years ago, Coinbase Prime has become the preferred platform for institutions and large cryptocurrency asset holders.
Coinbase is the main partner for most spot cryptocurrency ETFs. According to the exchange, as of March 31, 2024, Coinbase is protecting $330 billion of assets.
It is worth noting that the recent frequent transfer of cryptocurrency funds by the US government has caused market panic.
On Monday (July 1), according to PeckShieldAlert monitoring, about 3,400 ether seized by the US government, worth about $11.7 million, have been transferred to a new address 0x5ac4...A1871.
(Source: Twitter)
Chain tracking data institution Arkham pointed out that on Monday, a wallet address labeled 'German government' transferred 400 bitcoins worth approximately $25.28 million to Bitstamp, Coinbase and Kraken.
As Coinbase enters into cooperation with the US Department of Justice, its dispute with the US Securities and Exchange Commission (SEC) has not stopped.
According to FX168's report last week, Coinbase has filed a lawsuit against the SEC and the Federal Deposit Insurance Corporation (FDIC), accusing the two regulators of trying to exclude the cryptocurrency industry from the banking system.
The exchange stated that the regulators did not comply with the Freedom of Information Act (FOIA) and asked the US District Court for the District of Columbia to enforce the provision.
According to official documents from Coinbase: "Over the past two years, numerous federal financial regulatory agencies, including the SEC, the FDIC, and the Federal Reserve Board, have used every regulatory tool at their disposal to weaken the digital asset industry."
"This FOIA lawsuit is aimed at exposing the role of the FDIC in this unlawful plan."
Coinbase's chief legal officer, Paul Grewal, announced the lawsuit on Twitter and further expressed the exchange's dissatisfaction. The statement reads: "Federal financial regulators have used a variety of tactics to try to weaken the digital asset industry."
'The SEC claims to have broad powers, but refuses to provide any rules, let alone consistent or coherent rules. The FDIC is pressuring financial institutions to separate this industry from the banking system,' he continued.