The Office of the Inspector General (OIG) of the U.S. Department of Justice conducted an extensive review of cryptocurrencies seized by the U.S. Marshals Service (USMS) and identified an urgent need for a federal agency to update existing crypto governance systems and policies. .

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An OIG review of the seized cryptocurrencies showed that the USMS has adequate security measures in place regarding their storage and access. However, the agency was found to be using spreadsheets to track inventory due to the inability of the current Consolidated Asset Tracking System (CATS) to manage crypto assets on a daily basis.

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The OIG audit revealed a lack of documented policies and practices related to the management of forfeited crypto assets, especially regarding the use of inventory spreadsheets, adding:

“Current policies for managing cryptocurrencies seized by the USMS are inadequate, non-existent, or in some cases contain conflicting guidance regarding the storage, quantification, valuation, and disposal of assets.”

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Aware of USMS’ intention to outsource the management of seized cryptocurrencies, the Department of Justice OIG has developed seven recommendations to help improve their management, starting with the implementation of a property management system “that records a history of changes to prevent fraudulent inventory changes.” records.”

In addition, the OIG recommended the establishment of a new policy related to the proper security and handling of spreadsheets used to track cryptocurrency seizures. This includes moving data from spreadsheets to the CATS inventory.

Other key recommendations include introducing enough decimal places to ensure fractional precision and implementing policies focused on blockchain forks and physical control of assets captured by USMS, “including the corresponding USMS wallet keys.”

The report also indicated that the USMS has agreed to all seven recommendations and will be closed upon confirmation of their full implementation.

SEC chief fears cryptocurrency bill undermines financial protection

CoinShares’ weekly report on digital asset fund flows highlights a $101.5 million offload of digital asset products amid anticipation of a “hawkish monetary policy”, stating:

“What has pushed Bitcoin into a ‘crypto winter’ over the past six months can be broadly explained as a direct result of the increasingly hawkish rhetoric of the US Federal Reserve.”

The report also highlights that total assets under management in Ethereum (ETH) have fallen from a peak of $23 billion in November 2021 to $8.7 billion as of June 10, 2022.