Marshals Service Hires Custody Firm to Safeguard Seized Bitcoin

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Crypto prime brokerage BitGo Inc. has won a contract to keep safe digital coins seized by the U.S. Marshals Service.

The agency has been auctioning Bitcoin and other cryptocurrencies seized from criminals for several years. As Bitcoin’s price surged to record highs, the value of the confiscated holdings has skyrocketed. Late last year, Justice Department -- which Marshals Service is a part of -- seized nearly 70,000 Bitcoins valued at about $4 billion, based on current prices.

The contract BitGo won is valued at about $4.5 million, and its duration hasn’t been disclosed. BitGo is one of the largest digital assets custodians; in February, it announced it safeguarded $30 billion in assets.

“We work hard every day to manage what we believe is the most secure environment for holding digital assets,” Pete Najarian, chief revenue officer at BitGo, said in an interview. “We are excited to be working with an agency as important as U.S. Marshals Service.”

©2021 Bloomberg L.P.

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