French authorities arrested John “Lick” Daghita, who allegedly stole tens of millions in crypto from the US government.
In an X post on Thursday, FBI Director Kash Patel confirmed that Daghita had been arrested on the island of Saint Martin on Wednesday in a joint FBI and French gendarmerie operation.
In his social media post, Patel included photos of Daghita in handcuffs and another of a metal suitcase filled with packets of $100 bills and several USB sticks and what appear to be hardware crypto wallets.
“[The] The FBI will continue to work 24/7 with our international partners to track down, apprehend and prosecute those trying to defraud American taxpayers, wherever they try to hide,” said Patel.
The arrest concludes a month-long investigation by the US Marshals Service into whether Daghita, the son of a government contractor tasked with managing seized crypto funds, stole over $46 million from the government’s seizure purse.
Brady McCarron, head of public affairs for the USMS, told CoinDesk in late January that an investigation into allegations that Daghita had stolen cryptocurrency was ongoing.
The law enforcement investigation began after blockchain practitioner ZachXBT publicly claimed that Daghita, the son of CMDSS President Dean Daghita, had siphoned tens of millions of dollars in digital assets from wallets linked to US government seizures.
CMDSS is a Virginia-based contractor that advertises information technology and operational support services for US government agencies, including the Department of Justice and the Department of Defense. The company has previously been reported to have contracts that help the USMS manage and dispose of cryptocurrency seized during criminal investigations.
The investigator said he alerted authorities after identifying a wallet with about 12,540 ETH worth more than $36 million at the time, which he claimed was controlled by Daghita.
Daghita first attracted attention in online circles after appearing in a recorded dispute in a Telegram group chat with another alleged threat actor in what is known as a “band by band” exchange where participants try to prove control over large crypto holdings.
With Daghita now in custody, US authorities are expected to pursue extradition while the investigation continues.
