Key Points:
Coinbase was chosen by the US Marshals Service for custody and trading of digital assets.
The US Marshals Service Coinbase partnership aims to improve the management of seized cryptocurrencies.
Coinbase Global Inc. announced through its blog that it has been chosen by the US Marshals Service (USMS) to provide custody and advanced trading services for the agency’s digital assets.
US Marshals Service Coinbase Partnership to Manage Seized Digital Assets
The US Marshals Service Coinbase partnership, detailed in a blog on July 1st, signifies the USMS's trust in the exchange's institutional investing arm to handle custody and trading for large-cap digital assets.
The cryptocurrency exchange will centrally manage these assets in support of the federal agency, which occasionally takes custody of cryptocurrencies seized by the Justice Department. The US Marshals Service Coinbase partnership comes as the Justice Department division tasked with managing and disposing of seized digital assets like Bitcoin faces increasing complexities amid rising criminal convictions involving cryptocurrencies.
According to Coinbase, the USMS will utilize Coinbase Prime for custody purposes, aligning with its role in the Department of Justice’s Asset Forfeiture Program. Previously, the USMS had encountered challenges managing cryptocurrencies, as highlighted by a 2022 DOJ Office of Inspector General report, which noted the use of multiple spreadsheets due to the unique tracking requirements of digital assets.
Coinbase Supports Law Enforcement with Cryptocurrency Services
Coinbase expressed confidence in its selection with its robust track record and ability to securely provide institutional-grade crypto services at scale. The US Marshals Service Coinbase partnership is expected to bolster the exchange's reputation while ensuring operational efficiency in managing seized digital assets.
In addition to its current responsibilities, Coinbase has historically supported law enforcement agencies since establishing its law enforcement program in 2014. The company collaborates with major US federal, state, and local agencies, as well as international counterparts across various continents. Currently it is facing a lawsuit related to the SEC allegations of unregistered securities.
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