What happened?

The El Dorado Task Force from Homeland Security is investigating Anchorage Digital Bank for its internal practices and policies. This investigation comes after the bank received a consent order from the OCC due to not meeting anti-money laundering compliance standards. The probe coincides with Anchorage’s new crypto custody partnership with BlackRock.

Who does this affect?

This investigation affects Anchorage Digital Bank, its employees, and its partners, including BlackRock. It also concerns clients using Anchorage for crypto custody services and investors in Anchorage, such as Andreessen Horowitz and Goldman Sachs. The scrutiny could extend to other institutions involved in digital asset banking, especially those under similar regulatory frameworks.

Why does this matter?

This investigation highlights ongoing regulatory challenges in the cryptocurrency sector, potentially impacting trust and operational capabilities. The probe could influence market sentiment toward digital asset banks, affecting stock prices or investment confidence. Furthermore, any disruptions in Anchorage’s services might affect broader crypto markets, given its significant partnership with BlackRock.