Homeland Security Archives

Anchorage Digital Bank is now the subject of an inquiry by the U.S. Department of Homeland Security, according to a report from Barron’s. The agency’s El Dorado Task Force, which focuses on financial crimes such as money laundering, has reportedly contacted Anchorage employees to ask about the firm’s internal practices and compliance protocols. Good to know Anchorage Digital is under investigation by the U.S. Department of Homeland Security’s El Dorado Task Force. The firm is already operating under a 2022 consent order from federal banking regulators. CEO Nathan McCauley recently claimed a long-time banking partner cut ties without warning. While the exact purpose of the investigation remains unclear, the report points to growing regulatory interest in Anchorage’s operations. Neither Homeland Security nor Anchorage has issued public statements about the inquiry so far. Anchorage has dealt with regulatory pressure before. In 2022, the Office of the Comptroller of the Currency (OCC) issued a consent order against the company, citing violations of the Bank Secrecy Act. The OCC demanded stronger client screening processes and tighter anti-money-laundering controls. Anchorage said at the time it was already addressing the concerns and pledged to continue improving its systems. The new scrutiny from federal investigators comes amid ongoing tension between crypto firms and the traditional financial system. Earlier this year, Anchorage CEO Nathan McCauley shared his frustrations over a bank partner abruptly cutting ties after two years of doing business together. “Our story is pretty ridiculous… We had a bank that we had a growing relationship with for a number of years, who basically on a dime, decided to turn off our bank account,” he said. He didn’t name the bank but noted the decision came in June 2023—around the time “Choke Point 2.0” claims were spreading, referring to a rumored effort to cut crypto companies off from banking access. Anchorage, which focuses on digital asset custody and other services for institutions, remains under the OCC’s consent order. The new questions from Homeland Security add another layer of regulatory pressure, though no formal charges or accusations have been made public.

Homeland Security

Homeland Security Investigates Anchorage Digital Practices

SEC Hacking Incident Under Investigation by FBI and Homeland Security