Key Takeaways
- The US Department of Homeland Security is investigating Anchorage Digital Bank for financial practices.
- Anchorage has expanded its partnership with BlackRock for custodian services in crypto assets.
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The US Department of Homeland Security’s El Dorado Task Force has launched an investigation into Anchorage Digital Bank, the first and only chartered digital asset bank in the US, Barron’s reported Monday, citing sources with knowledge of the matter.
The task force, which focuses on combating money laundering and other financial crimes, has contacted former Anchorage employees as part of its investigation. However, the details of the probe are currently unknown.
Anchorage Digital is a recognized name in the digital asset space, having partnered with major institutions like Cantor Fitzgerald, previously headed by Howard Lutnick, who currently serves as commerce secretary under the Trump administration, and also with BlackRock.
Last November, Cantor Fitzgerald established a partnership with Anchorage and Copper to act as collateral managers and custodians for its new global Bitcoin financing business. The collaboration aims to offer top-tier digital asset custody services, starting with $2 billion in initial financing.
BlackRock has recently tapped the bank for its spot crypto ETF custody. The fund management giant offers two spot ETFs tied to Bitcoin and Ethereum, the IBIT and ETHA funds.
As of March 31, BlackRock’s spot crypto ETFs had around $50 billion in assets under management, according to its Q1 earnings report.
This isn’t the first time Anchorage Digital has encountered regulatory scrutiny. In 2022, the Office of the Comptroller of the Currency (OCC) took action against its banking arm for failing to meet BSA/AML obligations under its operating agreement.
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