Anchorage Digital faces scrutiny from US Homeland Security — Report

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Update (April 14 at 10:37 pm UTC): This article has been updated to include Anchorage’s response. The US Department of Homeland Security’s El Dorado Task Force has reportedly launched an investigation into Anchorage Digital Bank, a Wall Street-backed cryptocurrency firm.  According to an April 14 Barron’s report, members of the task force have contacted former employees of the company over the past weeks to examine its practices and policies. The report cites unidentified sources.  The reported Homeland task force probe hints at cross-national financial activities. Established in 1992, the El Dorado Task Force focuses on “transnational money laundering” activities and financial crimes carried out by organizations.  Anchorage is co-founded by Portuguese-American entrepreneur Diogo Mónica and Nathan McCauley, according to its website. Along with its US businesses, Anchorage has operations in Singapore and Portugal. Its investors include Andreessen Horowitz, Goldman Sachs and Visa, among others.  In a statement to Cointelegraph, a spokesperson for Anchorage refuted the report. “The Barron’s piece on our company was based on speculation,” they said, adding that “[Barron’s] had no information about the nature of the inquiry nor its targets, both of which are currently unspecified. We will, of course, fully cooperate with any legitimate inquiry that materializes.” Anchorage Digital is the only federally chartered crypto bank in the United States. It received its national trust bank charter from the Office of the Comptroller of the Currency (OCC) in January 2021.  Despite its advanced regulatory position, Anchorage Digital has faced regulatory challenges in the US. In April 2022, the OCC issued a consent order against the bank for deficiencies in its Bank Secrecy Act and Anti-Money Laundering compliance programs. At the time, the company was ordered to establish a committee to address the alleged issues under the oversight of the OCC. Anchorage’s crypto footprint Anchorage was founded…