French and U.S. authorities arrested John “Lick” Daghita on Wednesday on the island of Saint Martin, alleging he stole tens of millions of dollars in cryptocurrency from government seizure wallets managed by his father’s company. The arrest marks a significant development in an ongoing investigation into one of the largest insider thefts of government-held digital assets.
FBI Director Kash Patel confirmed the arrest in an X post on Thursday, stating that Daghita had been taken into custody in a joint operation between the FBI and French Gendarmerie. Patel included images showing Daghita handcuffed alongside photographs of a metal suitcase containing stacks of $100 bills and several USB drives and hardware crypto wallets, underscoring the scale of the alleged theft.
The investigation into Daghita’s activities began months earlier after blockchain investigator ZachXBT publicly alleged that he had siphoned more than $46 million from government seizure wallets. ZachXBT identified a wallet holding approximately 12,540 ETH, valued at over $36 million at the time, which he alleged was controlled by Daghita.
Daghita’s father, Dean Daghita, is president of CMDSS, a Virginia-based government contractor that provides information technology and operational support services to U.S. federal agencies. CMDSS has held contracts assisting the U.S. Marshals Service with managing and disposing of cryptocurrency seized during criminal investigations.
The breach represents a significant security concern for the U.S. government’s handling of seized digital assets. The allegation that an insider with direct access to government seizure wallets could divert funds raises questions about oversight and internal controls at the contractor level.
Brady McCarron, chief of public affairs for the U.S. Marshals Service, confirmed in late January that an investigation into allegations that Daghita had stolen cryptocurrency was underway. The monthslong probe by the USMS examined whether Daghita had accessed and diverted funds from government seizure accounts without authorization.
Daghita first came to the attention of the crypto community after appearing in a recorded Telegram group chat dispute with another alleged threat actor. In what is known as a “band for band” exchange, participants attempt to prove control of large cryptocurrency holdings, a practice that inadvertently exposed Daghita’s alleged involvement in managing substantial digital assets.
The incident highlights growing vulnerabilities in the management of seized cryptocurrency by government contractors. As digital asset seizures have increased, so too have the opportunities for insider threats, particularly among employees with direct access to private keys or wallet management systems.
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With Daghita now in custody in France, U.S. authorities are expected to pursue his extradition to face charges related to the alleged theft. The case is likely to result in significant criminal penalties if prosecution proceeds, potentially serving as a cautionary tale for other government contractors managing digital assets.
FBI Director Patel emphasized the agency’s commitment to pursuing those who attempt to defraud American taxpayers. “The FBI will continue working 24/7 with our international partners to track down, apprehend, and bring to justice those who attempt to defraud American taxpayers, no matter where they try to hide,” Patel stated in his announcement.
The arrest also underscores the increasingly international nature of cryptocurrency crime investigations. The need for FBI and French Gendarmerie cooperation to apprehend Daghita demonstrates how digital asset theft crosses borders easily, requiring coordinated law enforcement responses.
As the investigation continues, questions remain about the full extent of the alleged theft and whether other individuals may have been involved. The case is expected to prompt reviews of security protocols and access controls at government contractors managing seized crypto assets.
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