Crypto Custodian Faces Homeland Security Probe
Anchorage Digital Bank, a prominent crypto-focused financial institution backed by Goldman Sachs and BlackRock, is under investigation by the U.S. Department of Homeland Security. The inquiry, spearheaded by the El Dorado Task Force, centers on Anchorage’s internal compliance procedures, particularly those related to anti-money laundering (AML) and the Bank Secrecy Act (BSA).
Former Employees Questioned on Internal Controls
Sources close to the matter confirm that federal agents have contacted former Anchorage employees to gather information on the bank’s compliance practices. This outreach suggests that investigators are scrutinizing how Anchorage managed its responsibilities as a federally chartered crypto custodian, especially in regard to AML protocols and financial transparency.
History of Regulatory Red Flags
In 2022, Anchorage Digital was flagged by the Office of the Comptroller of the Currency (OCC) for significant deficiencies in its AML systems. While the firm responded with commitments to enhance oversight and monitoring, the renewed investigation indicates that regulators remain concerned about the institution’s ability to meet traditional banking standards.
Implications for Crypto-Banking Sector
Anchorage’s investigation comes amid a broader crackdown on crypto banks and digital asset platforms. As regulators work to impose tighter compliance measures on the industry, Anchorage’s case could set a precedent for how crypto custody services are evaluated and monitored moving forward.
No Public Statement Yet From Anchorage Digital
As of publication, Anchorage Digital has not issued a public comment regarding the ongoing investigation. The outcome may influence future regulatory frameworks for institutions operating at the intersection of traditional finance and cryptocurrency.
