French authorities arrested John “Lick” Daghita, who allegedly stole tens of millions in crypto from the U.S. government.

In an X post on Thursday, FBI Director Kash Patel confirmed Daghita had been arrested on Wednesday on the island of Saint Martin in a joint FBI and French Gendarmerie operation.

In his social media post, Patel included images of Daghita handcuffed and another one of a metal suitcase filled with packs of $100 bills and several USB and what appear to be hardware crypto wallets.

“[The] FBI will continue working 24/7 with our international partners to track down, apprehend, and bring to justice those who attempt to defraud American taxpayers, no matter where they try to hide,” Patel said.

The arrest caps off a monthslong investigation by the U.S. Marshals Service into whether Daghita, the son of a government contractor tasked with managing seized crypto funds, stole over $46 million from government seizure wallets.

Brady McCarron, chief of public affairs for the USMS, told CoinDesk in late January that an investigation into allegations that Daghita had stolen cryptocurrency were underway.

The law enforcement investigation began after blockchain sleuth ZachXBT publicly alleged that Daghita, the son of CMDSS president Dean Daghita, had siphoned tens of millions of dollars in digital assets from wallets associated with U.S. 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 Department of Defense. The company has previously been reported to hold contracts assisting the USMS with managing and disposing of cryptocurrency seized during criminal investigations.

The investigator said he alerted authorities after identifying a wallet holding roughly 12,540 ETH, worth more than $36 million at the time, that he alleged was controlled by Daghita.

Daghita first drew attention in online circles after appearing in a recorded dispute in a Telegram group chat with another alleged threat actor in what is known as a “band for band” exchange, where participants attempt to prove control of large crypto holdings.

With Daghita now in custody, U.S. authorities are expected to pursue extradition as the investigation continues.

Market analysts said Ether’s (ETH) uptrend was confirmed after the latest 25% recovery to $2,200 from its multi-year lows below $1,800.

Key takeaways:

• Ether rose to $2,200 on Wednesday, as onchain data shows signs of returning demand.

• ETH price support around $2,100 remains key for the bulls to hold.

Ether sellers are “losing control”

Ether’s net taker volume suggests that “sellers may be losing control” as demand for ETH derivatives returned, data from CryptoQuant shows. 

Net taker volume, a metric that measures the imbalance between buyers and sellers in derivatives markets, has flipped positive after being in negative territory for nearly two months.

This negative regime coincided with the bear market drawdown, indicating sustained aggressive selling across derivatives markets. 

“​​The latest prints show flows starting to turn positive, suggesting that seller dominance may be fading,” CryptoQuant analyst MorenoDV_ said in a recent Quicktake post, adding:

“​​Historically, shifts from prolonged negative taker pressure toward positive territory often precede short covering rallies and liquidity-driven rebounds, particularly after periods of forced selling.”

The return in ETH demand is also reflected by Ether’s Coinbase Premium Index, which has risen to levels last seen in December 2025.

After being negative for several months, the index has flipped positive, pointing to a return in demand from US investors, which could propel the ETH price higher.

“This indicates that US buying pressure remains positive,” CryptoQuant analyst CW8900 said, adding:

“If the Coinbase premium rises further, the rally will accelerate.”

Meanwhile, demand for spot Ether ETFs continues to recover, with these investment products recording $169.4 million in inflows on Wednesday. This shows the return of demand from institutional investors.

ETH traders anticipate a price rebound

Ether’s latest breakout must, however, not pull back below the $1,750 mark, according to analysts.

Trader and analyst Crypto Patel said that the $1,750 support must hold for “bulls to stay in control,” with the upside target set at “$2,500-$2,600.

“Lose $1,750 and bears take over again.”

Commenting on Ether’s Thursday push above $2,000, analyst Bren said a “larger bounce above $2,200 is likely.”

Meanwhile, Man of Bitcoin said that a successful retest of $2,100 support after the current retracement could open the path to $3,400 or higher.

As Cointelegraph reported, a daily candlestick close above $2,100 will revive the hopes of a recovery toward the 50-day simple moving average (SMA) at $2,381. A break above this level will mean that the corrective phase may be over.