Anchorage Digital faces scrutiny from US Homeland Security — Report

The US Department of Homeland Security is investigating Anchorage Digital Bank, a federally chartered cryptocurrency bank, for potential financial crimes. The investigation involves contacting former employees and focuses on possible transnational money laundering. Anchorage, co-founded by Diogo Mónica and Nathan McCauley, operates in the US, Singapore, and Portugal, with prominent investors like Goldman Sachs and Visa. Despite its regulatory status, Anchorage previously faced an OCC consent order for Bank Secrecy Act and Anti-Money Laundering compliance deficiencies. The company's services include custody for institutional clients like BlackRock and Cantor Fitzgerald, managing billions in assets. Competition in the institutional crypto custody market is growing, with traditional financial institutions entering the field. A lack of qualified custodians in the US is driving demand. High institutional investor interest in crypto assets further fuels the need for secure custody solutions. The investigation highlights the increasing scrutiny of the cryptocurrency industry's regulatory compliance.