Anchorage Digital Bank Faces US Probe Amid Crypto Scrutiny
2min read The US Department of Homeland Security’s el dorado task Force has initiated an investigation into Anchorage Digital Bank, the first and only chartered digital asset bank in the US. The task force, which is dedicated to combating money laundering and other financial crimes, has been reaching out to former Anchorage employees as part of its probe. However, the specifics of the investigation remain undisclosed.
Anchorage Digital is a well-known entity in the digital asset space, having established partnerships with major institutions. Notably, it has collaborated with Cantor Fitzgerald, previously led by Howard Lutnick, who currently serves as commerce secretary. Additionally, Anchorage has partnered with blackrock, a fund management giant that offers two spot ETFs tied to Bitcoin and Ethereum, the IBIT and ETHA funds. As of March 31, BlackRock’s spot crypto ETFs had around $50 billion in assets under management.
Anchorage Digital Bank, founded in 2017 by Nathan McCauley and Diogo Mónica, is a federally chartered crypto bank that provides services such as digital asset custody and trading infrastructure for institutions and governments. The firm has previously faced scrutiny, with the Office of the Comptroller of the Currency (OCC) issuing a consent order in April 2022. This order required Anchorage to enhance its anti-money laundering controls and improve customer due diligence, citing violations of the Bank Secrecy Act and gaps in its compliance systems. Anchorage has committed to strengthening its procedures and remains under the consent order.
The investigation into Anchorage comes at a politically significant time for the crypto industry. Anchorage has been actively fostering ties with officials loyal to the President, who has vowed to make the US the “crypto capital of the world.” CEO Nathan McCauley has publicly supported the President’s digital asset agenda and has taken a leading role in discussions around “debanking,” the practice of financial institutions cutting off services to crypto customers. In February, McCauley testified before the Senate Banking Committee about debanking practices. More recently, he attended a White House summit on digital assets and shared a photo with Bo Hines, executive director of the President’s Council of Advisors on Digital Assets, saying, “Crypto is in good hands.”
Anchorage has sought to bolster its credibility by hiring experienced regulatory and financial leaders. The firm’s board includes former Goldman Sachs executive Connie Shoemaker and Julie Williams, who was the OCC’s general counsel during the 2008 financial crisis. The firm also recently saw a legal leadership shakeup, with TuongVy Le, a former SEC crypto investigator, stepping down as general counsel. Anchorage was last valued at $3 billion in its 2021 fundraising round and became the first and still only crypto firm to receive a national bank charter from the federal regulator under then-OCC chairman Brian Brooks.
This investigation underscores the increasing scrutiny that the crypto industry is facing from regulatory bodies. The involvement of the Department of Homeland Security’s El Dorado Task Force highlights the seriousness of the probe and the potential implications for Anchorage and the broader crypto ecosystem. The outcome of this investigation could have significant ramifications for the regulatory landscape of digital assets in the US.
