The U.S. Marshals Service (USMS) is investigating claims that the son of CMDSS president, stole over $40 million in seized crypto assets that were in custody of the U.S. government. CMDSS, a firm providing IT services to the Department of Justice and Department of Defense, was contracted to safeguard cryptocurrencies confiscated during law enforcement operations.
According to an investigator, the son was allegedly caught on video during a Telegram group chat flaunting his crypto holdings. In the recording, the suspect displayed $2.3 million, and later moved an additional $6.7 million in Ethereum (ETH) into another wallet address. The funds traced back to at least $23 million linked to approximately $90 million in assets seized by the U.S. government in 2024 and 2025.
The investigation has attracted attention due to the father’s executive role at CMDSS, which currently holds a federal contract related to the management and disposition of forfeited cryptocurrency assets. Details of the case are still emerging and the USMS confirmed an investigation is ongoing, but declined further comment.
The implications of this security breach are significant. With crypto’s volatility and the government’s growing holdings and asset forfeiture activities, lax security could lead to a ripple effect within the crypto space. This recent case underscores the need for stricter protocols and reforms on how the government handles and manages its seized assets.
The USMS is tasked with managing holdings seized by law enforcement during criminal investigations, including real estate, cash, jewelry, antiques and vehicles.
For any asset seizure questions or inquiries, feel free to reach out to our office.
