U.S. Authorities Probe Alleged Theft of Over $40M in Seized Cryptocurrency

Blockchain researcher ZachXBT publicly traced transfers that he says moved more than $40 million in crypto from wallets linked to assets seized by U.S. authorities, drawing attention to an apparent insider theft from government-held reserves ^[1][4].

The situation prompted statements from Patrick Witt, a crypto adviser to former President Trump, and confirmation that the U.S. Marshals Service is examining the matter; multiple outlets report the federal investigation is ongoing as officials work to determine the scope of the losses ^[1][2][3].

Reporting by Bitcoin Magazine says investigators are examining leads that include the son of a federal contractor as a potential suspect, while other coverage notes the White House and law enforcement have not disclosed whether the government’s strategic bitcoin holdings were directly affected ^[3][4].

Authorities continue to investigate the alleged removal of government-held crypto; officials have not yet released a full accounting and media outlets are following developments as law enforcement traces the assets on-chain ^[1][2][3].