Child of American government contractor, alleged to have misappropriated millions in confiscated cryptocurrency, apprehended in France.

John “Lick” Daghita was apprehended in a collaborative operation between the FBI and French authorities following accusations that he misappropriated millions of dollars in cryptocurrency from government seizure wallets overseen by his father’s business.

FBI Director Kash Patel reported the apprehension of John Daghita, the person accused of misappropriating millions in government-seized cryptocurrency from his father. FBI (Credit: David Trinks on Unsplash/Modified by CoinDesk)

Key points:

• On Wednesday, French and U.S. law enforcement took John "Lick" Daghita into custody on the island of Saint Martin, asserting that he stole tens of millions of dollars in digital currency from the U.S. government.
• This arrest follows a lengthy investigation by the U.S. Marshals Service into allegations that Daghita, whose father operates a government contractor managing seized cryptocurrency, diverted over $46 million from government seizure wallets.
• The inquiry was initiated after blockchain investigator ZachXBT claimed that Daghita managed a wallet containing approximately 12,540 ETH, and U.S. officials are anticipated to seek his extradition as the case progresses.

French officials apprehended John "Lick" Daghita, who is accused of stealing tens of millions in cryptocurrency from the U.S. government.

In a post on X on Thursday, FBI Director Kash Patel confirmed Daghita’s arrest on Wednesday on the island of Saint Martin as part of a coordinated effort with the French Gendarmerie.

Patel shared images on social media showing Daghita in handcuffs alongside a metal suitcase filled with bundles of $100 bills and several USB devices, which appear to be hardware cryptocurrency wallets.

“The FBI will persist in working around the clock with our international partners to locate, capture, and bring to justice those who seek to defraud American taxpayers, regardless of where they attempt to conceal themselves,” Patel stated.

This arrest concludes a protracted investigation by the U.S. Marshals Service regarding whether Daghita, the child of a government contractor responsible for handling seized cryptocurrency funds, pilfered more than $46 million from government seizure wallets.

Brady McCarron, chief of public affairs for the USMS, informed CoinDesk in late January that an inquiry into allegations that Daghita had stolen cryptocurrency was in progress.

The law enforcement probe commenced after blockchain investigator ZachXBT publicly asserted that Daghita, the son of CMDSS president Dean Daghita, had diverted tens of millions of dollars in digital assets from wallets linked to U.S. government seizures.

CMDSS is a contractor based in Virginia that offers information technology and operational support services to U.S. government entities, including the Department of Justice and Department of Defense. The firm has been previously reported to hold contracts aiding the USMS in managing and disposing of cryptocurrency seized during criminal investigations.

The investigator stated he alerted authorities after identifying a wallet containing around 12,540 ETH, valued at over $36 million at that time, which he claimed was managed by Daghita.

Daghita first attracted attention in online communities after featuring in a recorded dispute within a Telegram group chat with another alleged threat actor in what is referred to as a “band for band” exchange, where participants attempt to demonstrate control of substantial cryptocurrency holdings.

With Daghita now in custody, U.S. authorities are likely to move forward with extradition as the investigation continues.