Coinbase, the largest registered crypto exchange in the United States, has entered into a $32.5 million agreement with the Justice Department’s U.S. Marshals Service to manage and trade its digital assets.
The U.S. Marshals Service, responsible for asset forfeiture, including seized crypto assets, emphasizes the necessity of secure custody and management of these digital holdings. This partnership aligns with its mission to handle and dispose of substantial amounts of cryptocurrency.
“Coinbase has a longstanding history of supporting law enforcement agencies, dating back to the founding of our law enforcement program in 2014,” the company stated in a blog post. Coinbase Prime, the firm’s institutional arm, will oversee the secure storage and trading of high-value cryptocurrencies for the U.S. Marshals Service.
The U.S. Marshals Service highlighted its role in “managing and disposing of large quantities of popular cryptocurrency assets.”
Coinbase also noted its extensive collaboration with various law enforcement agencies, including federal, state, and local agencies in the U.S., as well as international agencies across Europe, Asia, Africa, and Latin America. “Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission,” Coinbase added.
Currently, the U.S. government is the largest national holder of cryptocurrency, with over $13.8 billion in digital assets, according to Arkham Intelligence. Market analysts closely watch government crypto transactions due to their significant volume and potential market impact. Recent large-scale movements by the U.S. and German governments have notably influenced crypto markets.
In June, Germany began liquidating a portion of its $2.8 billion crypto holdings, selling over $195 million in one day, which caused bitcoin prices to drop by approximately 3.5%.
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