The US Department of Justice’s asset forfeiture section, known as the US Marshal Service, has selected Coinbase as its custodian for digital assets with high market capitalization.
Coinbase Prime will provide custody and enhanced trading services for its “Class 1” digital assets to assist federal law enforcement. The government requires dependable storage and liquidation methods to effectively handle and dispose of significant volumes of widely-used cryptocurrencies, referred to as Class 1 cryptocurrencies, in accordance with DOJ guidelines.
The alliance seeks to optimize the administration and liquidation of cryptocurrency assets, enabling a wider array of digital assets to be managed within the government’s asset seizure initiatives.
The exchange has highlighted its extensive track record of assisting law enforcement and engaging in partnerships with prominent federal, state, and local agencies both within the United States and outside.
Coinbase has been under review by the US Securities and Exchange Commission (SEC), especially following the transfer of 3,940 BTC worth $241 million to Coinbase. These funds were recovered from drug dealer Banmeet Singh in January 2024. John E. Deaton, a lawyer who supports cryptocurrencies, expressed disapproval of the US government’s activities, deeming them inconsistent.
He emphasized the necessity for regulatory organizations and government agencies to have clear and harmonized guidelines in order to establish a more stable and favorable climate for the cryptocurrency business.
The agreement between Coinbase and the Department of Justice (DOJ) confirms Coinbase’s position as a significant participant in the cryptocurrency custody industry and highlights the significance of cooperation between public and private sectors in overseeing digital assets. Establishing unambiguous and uniform legislation is crucial for creating a conducive atmosphere that promotes the growth and prosperity of the cryptoeconomy.
