CEO’s Son Allegedly Stole $40M From Government Crypto Wallets
ZachXBT dropped a bomb Saturday linking John Daghita to over $40 million stolen from US government-controlled crypto wallets.
Quick overview
- ZachXBT linked John Daghita to over $40 million stolen from US government-controlled crypto wallets, allegedly due to insider access.
- The incident unfolded during an online dispute where John showcased his wallets, revealing $23 million in real-time transactions.
- The investigation traced illicit funds back to government seizure addresses, raising concerns about vendor vetting and internal controls.
- Crypto Twitter is demanding transparency and better security measures for access to seized assets following this alarming breach.
ZachXBT dropped a bomb Saturday linking John Daghita to over $40 million stolen from US government-controlled crypto wallets. Daghita’s allegedly the son of CMDSS CEO – the company that had contracts handling seized government crypto. How he got access from his father remains unclear.
The whole thing came out during a “band for band” flex gone wrong. John got into an online beef with another threat actor, Dritan Kapplani Jr., in a group chat. To prove he had more money, John screen-shared his wallets live. Big mistake.
The recording shows John moving around $23 million in real time. Exodus wallet holding $2.3 million in Tron. Another segment shows $6.7 million in ETH getting transferred into an Ethereum address later identified as 0xd8bc. By the end, roughly $23 million got consolidated into that one wallet.
ZachXBT traced everything backward. Wallet 0xd8bc connects to another wallet, 0x8924, which John allegedly confirmed owning during the flex session. From there, the funds trace back to wallets tied to government seizure addresses and suspected victims.
Total exposure? Over $90 million in suspected illicit funds flowing through John’s wallets. That includes assets from the Bitfinex hack seizure address. Government-controlled crypto infrastructure got exploited, either through insider access or stolen credentials. Either way, internal controls failed catastrophically.
The timing’s wild. CMDSS got contracts specifically to custody seized crypto for the government. Having the CEO’s son allegedly siphon $40 million from those same wallets raises massive questions about vendor vetting, access controls, and oversight of government crypto operations.
Crypto Twitter erupted. People demanding transparency about who has access to seized assets, multi-sig requirements, real-time monitoring. The episode shows how weak custody practices create theft opportunities when billions sit in government wallets.
No charges filed yet. No official confirmation from authorities. ZachXBT’s allegations haven’t been tested in court. Everyone’s presumed innocent until proven otherwise. But the on-chain evidence he posted looks damning. Wallet flows, transaction timestamps, addresses – all publicly verifiable.
The recording itself is cybercrime gold. Criminals constantly expose themselves by flexing online. They want respect in underground circles, so they prove control over stolen funds publicly. That evidence then gets used against them.
CMDSS hasn’t commented. Neither has the government. John’s wallet activity stopped after ZachXBT’s thread went viral but the damage is done. Law enforcement now has a clear trail if they want to pursue it.
This isn’t even the first time government crypto custody got compromised. But having the contractor’s own family allegedly involved hits different. Raises questions about how many other insiders had access and whether anyone’s auditing these arrangements properly.
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