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US Government Cryptocurrency Accounts Under Investigation
In a recent development, US authorities have initiated an inquiry into a possible security breach involving cryptocurrency accounts managed by the government. As per a Reuters report, the US Marshals Service has confirmed through an email communication that they are looking into a potential hacking incident targeting government-controlled digital asset wallets.
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Social Media Buzz Reveals Crypto Heist
The investigation garnered public interest when Patrick Witt, the Executive Director of the President’s Council of Advisors for Digital Assets, took to social media earlier this week. On Monday, Witt commented on platform X, formerly known as Twitter, in response to blockchain investigator ZachXBT’s assertions. ZachXBT claimed that a hacker had illicitly acquired over $60 million in late 2025, including assets tied to government seizure wallets.
In a detailed series of posts on X, ZachXBT accused John “Lick” Daghita, the son of CMDSS head Dean Daghita. CMDSS purports to provide vital services to the Department of Justice (DOJ) and Department of Defense. The alleged theft surfaced during an intense “band for band” confrontation on Telegram. During this dispute, a young hacker allegedly began screen-sharing his wallet balances while boasting about his assets. Investigators later linked these wallets to more than $40 million in government-seized crypto holdings.
ZachXBT’s investigation further implicated “John Lick” in controlling wallets associated with over $90 million in suspected illicit funds. Among these were cryptocurrencies connected to US government seizure addresses, notably those related to the infamous Bitfinex hack, amplifying the gravity of the situation.
Crypto’s Role in the Midterm Elections
While the security of government crypto wallets is under scrutiny, the political and regulatory climate for digital currencies in the US is also heating up. CNBC has highlighted that the crypto-centric political action committee, Fairshake, amassed $193 million by the close of last year, positioning it as a formidable entity in the run-up to the congressional midterm elections.
This sum includes two significant donations received in the latter half of 2025: a $25 million contribution from Ripple and $24 million from Andreessen Horowitz’s crypto arm, a16z. Additionally, cryptocurrency exchange Coinbase, a staunch ally, donated $25 million in the first half of last year, shortly before Fairshake declared $141 million in available resources.
Josh Vlasto, a spokesperson for Fairshake, stated, “As the midterms approach, we remain committed to our mission. Fairshake continues to challenge anti-crypto politicians and support leaders who favor the crypto industry.”
This week, legislative efforts are underway as senators deliberate over the crypto market structure bill designed to establish comprehensive regulatory standards for the crypto sector. A segment of this legislation is slated for its initial vote on Thursday in the Senate Agriculture Committee. However, progress in the Senate Banking Committee has been hindered due to ongoing disputes over the bill’s specifics.
The cryptocurrency market is on the brink of a significant milestone, with the total market cap nearing the $3 trillion mark, as indicated by TradingView’s TOTAL chart.
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