Introduction
A major security breach has allegedly compromised millions in seized cryptocurrency under US government control, according to blockchain investigator ZachXBT. The investigation points to John “Lick” Daghita, son of a Department of Justice contractor, as controlling wallets tied to over $90 million in suspected illicit funds, including at least $40 million directly linked to federal seizure addresses. The scandal raises profound questions about the custodial integrity of government-held digital assets and has triggered a rapid digital disappearance by the implicated contracting firm.
Key Points
- Alleged theft involved cryptocurrencies linked to US government seizure addresses from historic hacks like Bitfinex.
- CMDSS, a firm claiming to provide services to the DOJ and Department of Defense, erased its digital footprint after allegations surfaced.
- Investigator ZachXBT documented real-time wallet movements showing suspect actively managing millions in ETH and TRX.
The Alleged Theft: From Telegram Taunt to $90M Discovery
The controversy erupted from a seemingly mundane online argument. According to ZachXBT’s investigation, a young hacker involved in a heated “band for band” dispute on Telegram began screen-sharing his cryptocurrency wallets while boasting about his holdings. This recorded exchange became the critical lead. The displayed wallets were subsequently traced to more than $40 million in seized crypto assets that belonged to the US government. The individual controlling them was identified as John Daghita.
ZachXBT’s findings extend far beyond that initial discovery. The investigator claims that John, known online as “Lick,” was observed controlling wallets tied to a total of over $90 million in suspected illicit funds. Among these assets were cryptocurrencies linked to specific US government seizure addresses, including those associated with the historic Bitfinex hack. The evidence, as documented by ZachXBT, includes recordings showing John actively managing multiple wallet addresses in real time, with millions of dollars’ worth of Ethereum (ETH) and Tron (TRX) being moved, strongly suggesting direct operational control over the substantial funds.
Government Contractor Links and the Digital Scrub
The allegations take on a more serious dimension due to the suspect’s familial connections. John Daghita is the son of Dean Daghita, president of CMDSS. This firm publicly states it provides critical services to high-level US agencies, specifically naming the Department of Justice (DOJ) and the Department of Defense. This link places the alleged theft uncomfortably close to the very entities responsible for securing seized assets.
In the immediate aftermath of ZachXBT’s public allegations, CMDSS initiated a near-total erasure of its digital footprint. The company scrubbed its official website, its account on the social media platform X, and its LinkedIn page. Concurrently, John Daghita reportedly began altering his online usernames and deleting NFT-related handles on Telegram. This coordinated retreat from public view suggests a reactive effort to distance the involved parties from the escalating scandal, though it has done little to quell the story.
Taunts, Transactions, and the Path Forward
Despite the attempts to vanish online, ZachXBT reported that John Daghita continued to engage provocatively. The investigator noted that the suspect taunted investigators and even sent a small amount of ETH from one of the flagged wallets directly to him. This act, seemingly a brazen challenge, only served to further cement the digital trail. ZachXBT stated his intention to return those specific funds directly to a US government seizure address, a move that underscores his core assertion: these assets rightfully belong to the government and were illicitly taken.
The implications of this case are significant for the cryptocurrency ecosystem and government oversight alike. It highlights the persistent vulnerabilities in the custody chain for seized digital assets, even when under the purported control of federal authorities and their contractors. The involvement of major cryptocurrencies like Bitcoin (BTC), Ethereum, and Tron in such a high-value alleged theft underscores the ongoing challenges of securing and tracking digital wealth. For the US Department of Justice and other agencies, this scandal prompts urgent questions about vetting procedures, security protocols, and the transparency of asset management for the growing volume of crypto seized in criminal investigations.
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