USMS awards BitGo a $4.5M contract to help it hold and auction seized crypto

Apr 22, 2021 | The Block News | 0 comments


BitGo has won a contract with the U.S. Marshals Service (USMS) to help the law enforcement agency retain and sell seized cryptocurrency. The USMS contracted BitGo for just over $4.5 million.

The notice sought a provider that could account for possible network forks, airdrops and wallet management in addition to basic custody; the agency found that in BitGo for a price of $4,549,672.22. The custodian will hold seized crypto for the agency and assist in any technical aspects of the forfeiture process.

The USMS awarded the contract yesterday, although it does not indicate the duration of the deal in its notice. BitGo said it was unable to give more information on the deal and the USMS did not respond to a request for comment in time for publication.

The USMS first began looking for a crypto firm to provide “the full range of virtual currency management and disposal services” in April of last year. The law enforcement agency manages seized assets from criminal investigations as part of its mandate.

This often results in public auctions of assets, including seized bitcoin. In February of 2020, it auctioned more than 4,000 BTC. Most notably, it auctioned off 30,000 BTC related to the Silk Road case to Silicon Valley venture capitalist Tim Draper in 2014.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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