French authorities have arrested John “Lick” Daghita, who allegedly stole tens of millions of dollars in cryptocurrency from the U.S. government.
In a Thursday
In his social media post, Patel posted a photo of Daghita in handcuffs, as well as a photo of another metal suitcase filled with $100 bills and several USB drives, as well as what appeared to be a hardware crypto wallet.
“[The] The FBI will continue to work 24/7 with our international partners to track down, arrest, and bring to justice those who seek to defraud American taxpayers, no matter where they try to hide. “Patel said.
The arrest caps a months-long investigation by the U.S. Marshals Service into whether Daghita, the son of a government contractor responsible for managing seized cryptocurrency funds, stole more than $46 million from government-seized wallets.
USMS Director of Public Affairs Brady McCarron told CoinDesk in late January that an investigation into allegations that Daghita stole cryptocurrency is ongoing.
The law enforcement investigation began after blockchain detective ZachXBT publicly accused Daghita, the son of CMDSS Chairman Dean Daghita, of misappropriating tens of millions of dollars in digital assets from wallets linked to U.S. government seizures.
CMDSS is a Virginia-based contractor that advertises information technology and operational support services to U.S. government agencies, including the Department of Justice and Department of Defense. It was previously reported that the company holds contracts to assist the USMS in the management and disposal of cryptocurrencies seized during criminal investigations.
Investigators said he alerted authorities after discovering approximately 12,540 ETH (worth more than $36 million at the time) in a wallet he claimed was controlled by Daghita.
Daghita first came to the attention of cyber circles during a recorded dispute with another alleged threat actor in a Telegram group chat, an event known as a “band-on-band” swap in which participants attempted to prove control of a large number of crypto assets.
Daguita is now in custody and U.S. authorities are expected to seek extradition as the investigation continues.
