WASHINGTON – Anchorage Digital Bank, the only cryptocurrency firm operating under a federal bank charter, is reportedly under investigation by a specialized financial crimes unit within the Department of Homeland Security, casting a shadow over the institution just as it deepens ties with major Wall Street players like BlackRock and Cantor Fitzgerald.
The inquiry is being conducted by the El Dorado Task Force, a group focused on disrupting transnational money laundering, according to a report published Monday by Barron’s, citing people familiar with the matter. Investigators have reportedly contacted former employees of Anchorage Digital in recent weeks to gather information about the bank’s practices and policies.
Details regarding the specific allegations or the precise scope of the Homeland Security investigation remain undisclosed. In a statement provided to the cryptocurrency news outlet Cointelegraph, Anchorage Digital reportedly refuted the characterization presented in the initial report. The Department of Homeland Security has not publicly commented on the existence or nature of the investigation.
Founded in 2017 and headquartered in San Francisco, Anchorage Digital achieved a significant milestone in January 2021 when the Office of the Comptroller of the Currency (OCC), during the final days of the previous Trump administration, granted it conditional approval for a national trust bank charter. This unique status positioned it as a potentially key bridge between the burgeoning digital asset market and traditional finance, attracting investments from venture capital giants like Andreessen Horowitz and established firms including Goldman Sachs and KKR, reaching a valuation exceeding $3 billion.
This is not the first instance of regulatory scrutiny for the bank. In April 2022, the OCC issued a consent order against Anchorage Digital, citing deficiencies in its Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance programs. The bank was mandated to establish a compliance committee and overhaul its procedures under OCC supervision. Anchorage stated in early 2023 that it had implemented significant enhancements to its compliance framework.
The current investigation emerges as Anchorage Digital secures high-profile roles within the institutional cryptocurrency ecosystem. The bank recently expanded its partnership with BlackRock, the world’s largest asset manager, becoming an eligible custodian for the firm’s spot crypto exchange-traded products, adding to its existing role supporting BlackRock’s BUIDL tokenized money market fund.
Furthermore, last month Anchorage announced a significant partnership with Cantor Fitzgerald, the investment bank headed by current Commerce Secretary Howard Lutnick. Anchorage serves as the custodian and collateral manager for Cantor’s newly launched Bitcoin financing business, which debuted with $2 billion in financing and aims for substantial growth.
The investigation highlights the complex regulatory environment facing digital asset firms, even those with federal charters. Anchorage CEO Nathan McCauley has maintained relations with the current administration, participating in a White House Digital Assets Summit in March and testifying before the Senate Banking Committee in February about the difficulties crypto firms face obtaining traditional banking services – a practice known as “debanking,” which President Trump has criticized. McCauley noted previously that Anchorage itself faced numerous rejections from traditional banks despite its federal charter.
Anchorage operates in an increasingly competitive field, providing custody, staking, and trading services primarily to institutional clients, vying with crypto-native firms like Coinbase and BitGo, as well as traditional financial institutions entering the space. Its role alongside Coinbase and BitGo as a custodian for BlackRock’s popular Bitcoin ETFs, which have collectively drawn over $35.5 billion in inflows since launching in January 2024, places it at a critical juncture in the market infrastructure.
The outcome of the El Dorado Task Force investigation remains uncertain, but any significant findings could potentially impact Anchorage’s operations and reverberate through its institutional client base, potentially prompting a reevaluation of custody arrangements within the rapidly evolving digital asset sector.
