US Probes Alleged $90M Crypto Theft Tied to Contractor’s Son
US authorities, including the US Marshals Service, are investigating an alleged theft of up to $90 million in cryptocurrency linked to the son of a contractor that provides services to the Department of Justice and Defense. Blockchain investigator ZachXBT posted on X that an individual known as “John ‘Lick’ Daghita” was seen controlling wallets tied to more than $90 million in suspected illicit funds, with investigators tracing over $40 million to government seizure addresses and some assets linked to funds from the Bitfinex hack. The matter surfaced after a Telegram dispute during which a young hacker shared wallet screens. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, confirmed he was looking into the claims. The probe raises concerns about custody and security of government-controlled wallets and appears amid heightened political activity around crypto — notably large PAC donations from Ripple, a16z and Coinbase to crypto-focused PAC Fairshake and ongoing Senate discussions on crypto market-structure legislation. Key takeaways for traders: potential short-term volatility if more seized funds move, reputational and regulatory pressure could accelerate stricter custody standards and legislation, and linked high-profile hacks (e.g., Bitfinex) may revive scrutiny on exchange and seizure-wallet security.
Bearish
This news is likely bearish for crypto markets in the near term. An alleged $90M theft tied to government‑seized wallets increases perceived counterparty and custody risk, which typically prompts risk‑off behavior among traders and institutions. If investigators confirm movement of seized funds or further links to high‑profile hacks (e.g., Bitfinex), exchanges, custodians and on‑chain analytics providers could face heightened scrutiny, triggering forced liquidations or withdrawal freezes that amplify volatility. Historically, revelations of large-scale breaches or mismanagement (Mt. Gox, Bitfinex, Terra‑related liquidity collapses) produced immediate price drops and increased market fear. In the medium to long term the impact could be mixed: stricter custody standards and clearer regulation may restore confidence among institutional participants, but increased compliance costs and potential asset freezes could dampen speculative flows. Traders should monitor on‑chain movement of wallets implicated in the report, regulatory statements, and any exchange custody responses; short‑term strategies could include reducing leverage, hedging positions, or watching stablecoin and BTC/ETH funding spreads for stress signals.