French authorities arrested John “Lick” Daghita, who allegedly stole tens of millions in cryptocurrency from the United States government.
In an X post on Thursday, FBI Director Kash Patel confirmed that Daghita had been arrested on Wednesday on the island of Saint Martin in a joint operation by the FBI and the French gendarmerie.
In his social media post, Patel included images of Daghita in handcuffs and another of a metal suitcase filled with bundles of $100 bills and several USBs and what appear to be hardware crypto wallets.
“[The] “The FBI will continue to work 24/7 with our international partners to track, arrest and bring to justice those who attempt to defraud American taxpayers, no matter where they try to hide,” Patel said.
The arrest caps a month-long investigation by the US Marshals Service into whether Daghita, the son of a government contractor tasked with managing seized crypto funds, stole more than $46 million from seized government wallets.
Brady McCarron, head of public affairs for the USMS, told CoinDesk in late January that an investigation was underway into allegations that Daghita had stolen cryptocurrency.
The police investigation began after blockchain detective ZachXBT publicly alleged that Daghita, the son of CMDSS Chairman Dean Daghita, had diverted tens of millions of dollars in digital assets from wallets associated with US government seizures.
CMDSS is a Virginia-based contractor that advertises information technology and operational support services for U.S. government agencies, including the Department of Justice and the Department of Defense. It was previously reported that the company had contracts to help the USMS manage and dispose of cryptocurrencies seized during criminal investigations.
The researcher said he alerted authorities after identifying a wallet containing approximately 12,540 ETH, worth more than $36 million at the time, that was allegedly controlled by Daghita.
Daghita first gained attention in online circles after appearing in a dispute recorded in a Telegram group chat with another alleged threat actor in what is known as a “gang-for-gang” exchange, where participants attempt to demonstrate control of large cryptocurrency holdings.
With Daghita now in custody, US authorities are expected to request extradition as the investigation continues.
