Security Breach Involving Government-Linked Cryptocurrency Wallets
Recent revelations by blockchain investigator ZachXBT suggest a serious security breach involving government-linked cryptocurrency wallets, implicating the son of a CEO connected to federal custodial contracts. The allegations accuse John Daghita, whose father, Dean Daghita, leads Command Services & Support (CMDSS) – a firm currently engaged in a government IT contract in Virginia – of orchestrating a theft of over $40 million from wallets tied to U.S. government assets, particularly those seized during the notorious 2016 Bitfinex hack.
Investigation Details
In a series of tweets, ZachXBT outlined his investigation into Daghita, known in online circles as Lick, indicating he may have diverted significant funds from wallets that were under government custody. Citing on-chain data, ZachXBT points to transactions involving $24.9 million that originated from a government-controlled wallet as recently as March 2024, with total misappropriated funds possibly exceeding tens of millions of dollars.
ZachXBT’s inquiry gained traction following an intense exchange on Telegram, where “Lick” supposedly showcased his cryptocurrency holdings, ultimately demonstrating control over substantial amounts.
The exchanges hinted at a broader network of illicit activities, with an earlier report linking Daghita to approximately more than $90 million in suspicious transactions.
Concerns Surrounding CMDSS
The allegations against CMDSS aren’t entirely new. The company’s appointment as a custodian faced pushback from rival Wave Digital Assets, which contended that CMDSS lacked necessary registrations and raised conflicts of interest related to prior Marshals Service officials. Despite these concerns, the Government Accountability Office dismissed Wave’s protest.
Additionally, a 2025 report from CoinDesk revealed the U.S. Marshals Service grappling with its digital asset inventory, as the value of illicit funds flowing through these channels spiked to an astonishing $154 billion that year, raising alarms about transparency and security in federal crypto custody operations.
Current Cryptocurrency Market Trends
Meanwhile, in the cryptocurrency market, Bitcoin continues to remain a dominant force, reflecting trading values between $87,700 and $87,900, with a slight dip of about 1% in the past day. Ethereum has seen a minor increase near €3,150 to €3,200, while Solana’s value has decreased to around €151, signaling a market more attuned to broader economic trends than to potential custody breaches at this juncture.
