Anchorage Digital Bank is facing an investigation led by the U.S. Department of Homeland Security’s El Dorado task force, a unit focused on international money laundering and financial crimes. The specifics of this inquiry remain unclear, but it marks a rare federal probe into a federally chartered cryptocurrency institution. Reports suggest that investigators have contacted former employees of Anchorage Digital to examine internal practices and policies, particularly those related to cross-border financial activities.
This investigation comes amidst regulatory scrutiny of digital asset firms as the firm navigates a challenging legal landscape. Anchorage Digital Bank stands out for its designation as the only federally chartered crypto bank in the U.S., having secured its national trust bank charter from the Office of the Comptroller of Currency (OCC) in January 2021. This milestone, however, has not been without regulatory hurdles. In April 2022, the OCC issued a consent order highlighting deficiencies in Anchorage’s compliance with Bank Secrecy Act and Anti-Money Laundering standards. This order led to the formation of a dedicated oversight committee for the firm under OCC supervision.
Founded in 2017 by Diogo Mónica and Nathan McCauley, Anchorage Digital has emerged as a key player in institutional cryptocurrency custody, notably serving as Blackrock’s Bitcoin ETF custodian, with inflows exceeding $35.5 billion since their launch in January. Additionally, the firm manages custody and collateral services for Cantor Fitzgerald’s Bitcoin assets. This investigation into Anchorage Digital is significant due to its potential impact on both the crypto and traditional financial sectors, highlighting increased scrutiny of digital asset companies.