US authorities have launched an investigation into a potential breach involving government‑controlled cryptocurrency accounts. According to a Reuters report, the US Marshals Service confirmed in an email that it is examining a possible hack of government digital‑asset wallets.
Social Media Drama Unveils Crypto Crime
The investigation gained public attention earlier this week after Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, weighed in on social media.
On Monday, Witt responded on social media platform X (previously Twitter) to claims made by blockchain investigator ZachXBT, stating that he was looking into the matter. ZachXBT alleged that a hacker stole more than $60 million in late 2025, including funds traced back to government seizure wallets.
In a series of posts on X, ZachXBT accused John “Lick” Daghita, the son of Dean Daghita, the head of CMDSS, a firm that claims to supply crucial services to the Justice Department (DOJ) and the Department of Defense. The alleged theft came to light during a heated “band for band” dispute on the messaging app Telegram.
During the argument, a young hacker began screen‑sharing his wallets while boasting about his holdings. Investigators later traced those wallets to more than $40 million in seized crypto assets belonging to the government.
ZachXBT’s findings went further, alleging that the individual known as “John Lick” was seen controlling wallets tied to more than $90 million in suspected illicit funds.
Among the assets identified were cryptocurrencies associated with US government seizure addresses linked to the high‑profile Bitfinex hack, adding another layer of seriousness to the allegations.
Midterm Elections Countdown
While questions around government wallet security continue to unfold, the broader political and regulatory environment for crypto in the United States is also intensifying.
CNBC reported on Wednesday that the crypto‑focused political action committee (PAC) Fairshake raised a total of $193 million by the end of last year, positioning it as a major force ahead of the upcoming congressional midterm elections.
The updated figure reflects two significant donations made in the second half of 2025, including $25 million from Ripple and $24 million from venture capital firm Andreessen Horowitz’s crypto arm, a16z.
Cryptocurrency exchange Coinbase, another major supporter, contributed $25 million in the first half of last year, shortly before Fairshake announced it had $141 million available.
“With the midterms approaching, we are united behind our mission, with Fairshake continuing to oppose anti‑crypto politicians and support pro‑crypto leaders,” Fairshake spokesperson Josh Vlasto said.
This week, senators are negotiating the crypto market structure bill aimed at setting regulatory standards for the entire crypto sector. One portion of the legislation is expected to receive its first vote Thursday in the Senate Agriculture Committee.
However, the section overseen by the Senate Banking Committee has been delayed after lawmakers called off a planned vote amid ongoing disagreements over the bill’s provisions.
Featured image from OpenArt, chart from TradingView.com
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