Coinfeeds Daily → US Marshals Partner with Coinbase for Crypto Asset Management

US Marshals Partner with Coinbase for Crypto Asset Management

Published: Jul 02, 2024 | Last Updated: Jul 02, 2024
Howard Kane

The $32.52 million deal aims to streamline custody and disposal of Bitcoin, Ethereum, and other digital assets amid ongoing legal challenges.

The U.S. Marshals Service (USMS), a division of the Department of Justice, has recently announced a significant partnership with Coinbase, a leading cryptocurrency exchange platform. This collaboration is aimed at managing and disposing of large quantities of cryptocurrencies, specifically Class 1 cryptocurrencies, which include popular digital assets like Bitcoin and Ethereum.

Details of the Partnership

The partnership between the USMS and Coinbase is valued at $32.52 million. Coinbase Prime, the institutional arm of Coinbase, has been chosen to handle the custody and advanced trading of these digital assets. The selection of Coinbase Prime came after a rigorous due diligence process, highlighting Coinbase's strong track record and its ability to provide secure, institutional-grade crypto services.

Objectives of the Collaboration

The primary goal of this partnership is to streamline the custody, management, and disposal processes for digital assets that fall under the government's forfeiture programs. The USMS aims to ensure that these processes are carried out professionally and lawfully, in line with Department of Justice and USMS policies. Coinbase will employ various storage and liquidation techniques to manage these assets effectively.

Context and Legal Background

This collaboration comes at a time when Coinbase is facing legal challenges from the Securities and Exchange Commission (SEC). The SEC has filed a lawsuit against Coinbase, alleging that the platform has been selling unregistered securities. Despite these ongoing legal disputes, the USMS has chosen to proceed with the partnership, underscoring Coinbase's reliability and expertise in handling digital assets.

Practical Takeaways

For those involved in the cryptocurrency space, this partnership highlights the increasing involvement of government agencies in the management of digital assets. It also underscores the importance of regulatory compliance and the need for secure, professional handling of cryptocurrencies. As the landscape of digital assets continues to evolve, collaborations like this one between the USMS and Coinbase may become more common, setting new standards for how digital assets are managed and disposed of by government entities.

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