The Department of Homeland Security’s El Dorado Task Force is reportedly conducting an investigation into Anchorage Digital Bank’s internal practices and policies, as reported by Barron’s on April 14th. The task force, which focuses on combating money laundering and financial crimes, has reached out to employees of the crypto company in recent weeks to inquire about their operations.
Anchorage Digital Bank, established in 2017 by engineers Diogo Mónica and Nathan McCauley, is the only federally chartered digital asset bank in the United States. Despite having heavyweight financial backers such as Andreessen Horowitz and Goldman Sachs, the bank has faced regulatory scrutiny in the past. The U.S. Office of the Comptroller of the Currency (OCC) issued a consent order to Anchorage for its failure to meet anti-money laundering compliance standards.
Former Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of holding all nationally chartered banks to high standards, regardless of the nature of their activities. The OCC’s enforcement actions are intended to ensure compliance with federal laws and regulations and maintain the integrity of the financial system.
The timing of the investigation coincides with Anchorage Digital Bank’s recent partnership with BlackRock, the world’s largest investment bank. The collaboration aims to provide crypto custody services in response to increasing client demand for digital assets. While it remains unclear how the probe may impact this business relationship, both companies are committed to navigating any challenges that may arise.
As the investigation unfolds, stakeholders in the crypto industry will be closely monitoring developments to assess the potential implications for regulatory compliance and market stability. The collaboration between Anchorage Digital Bank and BlackRock underscores the growing interest in digital assets among traditional financial institutions, signaling a new era of innovation and partnership in the evolving financial landscape.