:max_bytes(150000):strip_icc()/INV_DOJ_Seal_GettyImages-2101886727-f954c90cb7c94f6f92183ad994dc3236.jpg "Coinbase Stock Jumps After DOJ Appoints Coinbase Prime as Custody Partner")
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Key Takeaways
- The U.S. Marshals Service, a division of the U.S. Department of Justice (DOJ), has selected Coinbase to handle its cryptocurrency custody and trading needs, the company said Monday.
- The deal is said to be valued at $32.5 million and is focused on handling large-capitalization digital assets that have been forfeited to law enforcement.
- The announcement comes at a time when Coinbase is facing its own legal battles with the Securities and Exchange Commission (SEC).
- Coinbase shares were up almost 6% in late Monday afternoon trading after the DOJ contract announcement.
The U.S. Marshals Service, which is part of the Department of Justice, has selected Coinbase Prime to handle custody and advanced trading services for large-capitalization digital assets that have been forfeited to law enforcement, according to a Coinbase blog post Monday.
Coinbase Prime is the institution-focused, prime brokerage arm of Coinbase Global (COIN), better known for its retail-investor crypto exchange. The contract is valued at $32.5 million, according to the official award notice.
This arrangement seem odd, especially since Coinbase has been engaged in legal battles with other government enforcement agencies.
Coinbase Suing Other US Regulatory Agencies
Coinbase is navigating legal challenges with the SEC over platform registration issues and has recently sued that agency and the Federal Deposit Insurance Corp. (FDIC) for attempting to disconnect the crypto industry from the banking sector and failing to provide regulatory clarity, among other complaints.
Despite those tussles, Coinbase states that it “has a longstanding history of supporting law enforcement agencies, dating back to … 2014.”
Coinbase stock was up roughly 6% in late Monday trading, with bitcoin’s price also off to a positive start for the week, rising to more than $63,000 from roughly $60,000 since Friday.