French authorities have arrested John “Lick” Daghita, who allegedly stole tens of millions of dollars in crypto from the US government.
In a post published Thursday, FBI Director Kash Patel confirmed that Daghita was arrested on Wednesday on the island of Saint-Martin as part of a joint operation by the FBI and the French gendarmerie.
In his social media post, Patel included images of Daghita in handcuffs and another of a metal suitcase filled with bundles of $100 bills and several USB drives and what appear to be hardware crypto wallets.
“[The] The FBI will continue to work 24/7 with our international partners to track, apprehend and bring to justice those who attempt to defraud American taxpayers, no matter where they try to hide,” Patel said.
The arrest caps a months-long investigation by the US Marshals Service into whether Daghita, the son of a government contractor charged with managing seized crypto funds, stole more than $46 million from seized government wallets.
Brady McCarron, head of public affairs for the USMS, told CoinDesk in late January that an investigation into allegations that Daghita stole cryptocurrency was underway.
The law enforcement investigation began after blockchain detective ZachXBT publicly alleged that Daghita, the son of CMDSS President Dean Daghita, had siphoned tens of millions of dollars in digital assets into wallets associated with U.S. government seizures.
CMDSS is a Virginia-based contractor that promotes information technology and operational support services for U.S. government agencies, including the Department of Justice and the Department of Defense. The company was previously reported to hold contracts helping the USMS manage and dispose of cryptocurrencies seized during criminal investigations.
The investigator said he alerted authorities after identifying a wallet containing approximately 12,540 ETH, worth more than $36 million at the time, which he believed was controlled by Daghita.
Daghita first gained attention in online circles after appearing in a recorded argument in a Telegram group chat with another alleged threat actor in what is known as a “group for group” exchange, where participants attempt to prove control of large crypto holdings.
With Daghita now in custody, US authorities are expected to seek his extradition as the investigation continues.
