Investigators have moved to clamp down on a high-profile crypto theft tied to government-held assets. The FBI announced the arrest of John Daghita on Saint Martin, alleging he gained unauthorized access to wallets managed under a federal asset protection program that oversees seized digital assets. The operation, conducted with assistance from the French Gendarmerie’s premier elite tactical unit, culminated in Daghita’s detention on the Caribbean island, according to an X post from FBI Director Kash Patel. Images released by the bureau show a handcuffed suspect alongside items including cash, several thumb drives, a cellphone, and three devices resembling hardware wallets. The case forms part of a broader effort to secure and trace digital assets held by government authorities, with investigators pursuing how illicit activity flowed through custody channels. Earlier reporting by ZachXBT linked a wallet to roughly $23 million in digital assets connected to a larger $90 million seizure reported by U.S. authorities in 2024–25; the FBI has not disclosed whether any funds were recovered in this particular instance.

Key takeaways

• A joint operation involving the FBI and the French Gendarmerie led to the arrest of John Daghita on Saint Martin, amid allegations of unauthorized access to wallets under the federal asset protection program.
• The case is tied to a wider seizure activity, with about $90 million reported as seized by U.S. authorities in 2024–25 and roughly $23 million traced to a wallet linked to Daghita’s activity.
• Physical traces presented by the FBI—cash, thumb drives, a phone, and hardware-wallet–style devices—underscore the tangible nature of what is often framed as digital crime.
• The FBI did not publicly state whether any portion of the stolen funds has been recovered as part of this operation.
• Ongoing cross-border cooperation signals a broader trend of international intelligence-sharing and tactical enforcement in crypto-related cases, particularly when government-held assets are implicated.

Market context: The incident arrives amid heightened scrutiny of how governments custody seized crypto assets and how authorities trace illicit flows across custody solutions. It also highlights the increasingly international reach of enforcement actions in crypto thefts, a trend observed as authorities expand on-chain analytics and cross-border cooperation to deter and punish criminal access to digital assets.

Why it matters

The arrest foregrounds a crucial ongoing narrative about security and governance in crypto custody. When government-held digital assets are at risk, the integrity of custody procedures, access controls, and key management become central to preventing unauthorized withdrawal or manipulation. The broad takeaway for custodians, exchanges, and asset-recovery teams is that physical artifacts—such as drives, devices that resemble hardware wallets, and even cash—can accompany cyber-enabled offenses, reinforcing the need for robust physical and digital safeguards around seized assets.

For law enforcement and policy makers, the Saint Martin operation illustrates how cross-border cooperation can be instrumental in pursuing suspects whose activities straddle multiple jurisdictions. The involvement of the French Gendarmerie’s tactical unit alongside U.S. authorities demonstrates a willingness to deploy coordinated, high-profile actions to disrupt alleged theft rings connected to federally held crypto assets. It also underscores the importance of transparent, timely communications from agencies to convey progress and manage public expectations in high-stakes investigations.

From a broader market and ecosystem perspective, the episode reinforces the value of meticulous asset tracing and forensic analyses. Analysts and researchers who monitor wallet movements—and the methods by which seized holdings are linked to specific individuals or entities—play a growing role in connecting on-chain activity with off-chain events and enforcement outcomes. The coverage also serves as a reminder that regulatory clarity around asset forfeiture, disclosure requirements, and custody standards may influence how institutions structure their own risk controls and reporting practices in the years ahead.

For investors and participants in crypto markets, incidents like this can shape risk sentiment and the perceived security of custody arrangements. While such enforcement actions do not directly implicate the day-to-day operations of legitimate traders, they contribute to a climate in which stakeholders expect greater transparency around how seized or controlled assets are stored, displayed, and eventually resolved through legal processes.

What to watch next

• Formal charges or court filings against John Daghita in an appropriate jurisdiction, including any details about his role and the mechanics of the access that allegedly occurred.
• Public updates from the U.S. Marshals Service or the FBI regarding whether any portion of the seized funds has been recovered or forfeited.
• Further disclosures about the specific wallets, asset types involved, and the custody framework under which they were kept.
• Additional coordinated actions or arrests related to this case or related custody breaches, especially given the cross-border nature of the operation.
• Subsequent analyses or statements from investigators that illuminate how on-chain traces were linked to off-chain assets and how artifacts recovered from the scene are being evaluated.

Sources & verification

• FBI Director Kash Patel’s X post announcing the arrest: https://x.com/FBIDirectorKash/status/2029574256959389933
• Related coverage about the US Marshals investigation into seized digital assets: https://cointelegraph.com/news/us-marshals-investigation-seized-digital-assets
• Further reading on the wallet linked to the alleged seizure and subsequent memecoin activity: https://cointelegraph.com/news/us-treasury-theft-wallet-bundled-memecoin-crashes-97

FBI arrest tied to multi‑million crypto theft from government custody

The episode centers on a perceived breach of custody protocols governing digital assets that had been seized and were intended for federal protection. The FBI’s announcement—paired with imagery supplied by the agency—provides a rare, tangible glimpse into the investigative trail: a handcuffed suspect, a suitcase of cash, and a collection of devices that practitioners in the space recognize as potential hardware-wallets. The narrative ties back to earlier reporting that traced a wallet holding tens of millions in digital assets to a broader seizure by U.S. authorities, underscoring how modern enforcement blends traditional investigative methods with on-chain analytics to establish a credible link between individuals and illicit flows.

Key elements in the report—the involvement of Saint Martin and the French Gendarmerie’s elite unit—emphasize the international scope of crypto enforcement. This is not merely a domestic matter; it reflects a governance and security dimension that cuts across borders, especially when the assets in question are held under a federal program designed to safeguard seized digital holdings. While the FBI has not disclosed recovery figures for the funds tied to this case, the scarcity of such disclosures in high-profile crypto thefts is a reminder that asset disposition in these cases can be complex, often requiring lengthy legal processes before any forfeiture or restitution is finalized.

From a narrative standpoint, the photos and the articulated sequence point to a broader truth about the crypto ecosystem: the boundary between the digital and physical world remains porous in the eyes of investigators. Hardware-wallet-like devices, thumb drives, and other offline storage components are not abstract symbols; they are practical vectors and artifacts that can illuminate how attackers choreograph access to protected funds. The public-facing portion of the case thus serves as a test case for how custody protocols, physical security measures, and cross-jurisdictional cooperation converge to deter theft and, when necessary, pursue accountability through the courts.

In the coming weeks and months, observers will watch for updates on charges, asset recovery, and the precise custody arrangements surrounding seized digital assets. The outcome could influence how other agencies calibrate their own asset-protection practices and how market participants interpret regulatory signals tied to enforcement actions. The intersection of on-chain forensics, cross-border law enforcement, and the governance of seized crypto assets remains a critical frontier for the industry as it evolves toward greater resilience and transparency.

• Cardano (ADA) is now accepted at 137 Swiss SPAR stores via direct wallet payments.
• ADA’s price remains stagnant near $0.272 despite retail adoption.
• The key levels to watch are the $0.28 resistance and the $0.26 support.

The price of Cardano’s ADA token has remained unmoved even after 137 SPAR supermarkets across Switzerland announced they now accept Cardano (ADA) as a payment method, giving the cryptocurrency a new real-world utility.

The integration, powered by a payment system that connects Cardano’s blockchain to everyday retail checkouts, allows SPAR customers to pay directly from their wallets, without converting to traditional currencies.

You can now pay with $ADA at 137 SPAR stores across Switzerland.

In partnership with @DFX_swiss and @BrickTowers, we are helping bring blockchain into everyday commerce through real-time, low-cost retail payments.

Read the full press release: https://t.co/gvYRHclp4F

— Cardano Foundation (@Cardano_CF) March 5, 2026

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Cardano’s ADA token remains unmoved

This move marks a significant step toward mainstream adoption of ADA.

For many cryptocurrencies, being used in everyday retail has been a distant goal, and Cardano now joins a small group of digital assets being used at physical stores.

However, despite this positive development, ADA’s market performance has remained relatively stagnant.

At press time, the cryptocurrency was trading around $0.272, down 1.3% over the last 24 hours.

Cardano price technical analysis

From a technical standpoint, momentum indicators provide a mixed picture.

The Relative Strength Index (RSI) is recovering from oversold territory but remains below neutral, suggesting buyers have yet to assert dominance.

The Moving Average Convergence Divergence (MACD) indicator readings are flat, signalling a lack of strong bullish or bearish momentum.

Derivatives markets indicate a cautious stance, with long-to-short ratios below one and declining futures participation, hinting that traders are leaning toward a defensive approach rather than aggressive buying.

On-chain activity also shows more coins are being moved, a signal that holders may be redistributing or taking profits.

Combined with modest daily losses, this data suggests that ADA’s recent rebound is not yet convincing enough to trigger a larger market rally.

ADA price forecast

While Cardano’s integration into 137 Swiss SPAR stores is a landmark moment for adoption, the market has yet to respond.

Technical levels suggest that ADA remains range-bound, and traders should be looking for decisive moves either above the immediate resistance or below the immediate support to determine the next trend.

Notably, a descending trendline has been forming, with $0.28 currently acting as the immediate resistance point.

Therefore, a breakout above this level with sustained volume could open the path toward $0.32, where stronger resistance aligns with clustered moving averages.

On the downside, a clear break under $0.26 could bring the $0.24 level into play.

Falling below that could accelerate selling and bring prices closer to $0.21, echoing recent technical warnings about potential downside.

Analysts say past periods of deeply negative funding rates on Binance have often been followed by corrective rallies.

XRP funding rates on Binance turned negative this week, hitting levels that have historically preceded short-term price rebounds.

The setup suggests crowded short positioning may have created conditions for a corrective rally, though analysts caution this does not guarantee a lasting trend reversal without a broader market catalyst.

Derivatives Data Flashes Contrarian Signal

Data from Binance shows XRP funding rates entered a phase of extreme negativity, while the asset ranged between $1.35 and $1.50, according to CryptoQuant analyst Darkfost. This comes after the Ripple token experienced a 60% correction from its July 2025 all-time high of $3.65, with most derivatives traders positioning on the short side despite the sustained drop.

Historical data suggests that short-term rebounds or corrective rallies in XRP often follow periods of extreme negative funding rates on Binance. The analyst emphasized that such configurations act as contrarian indicators, suggesting bearish positioning may have become overcrowded relative to actual price action.

“When market consensus becomes excessively aligned in one direction, history shows that markets tend to surprise the majority,” Darkfost wrote.

Even though the configuration does not ensure long-term trend reversals, the on-chain observer pointed out that it was a favorable indicator for investors trying to find appealing entry points or looking to progressively increase their exposure to XRP.

Exchange Outflows Suggest Supply Tightening

On the technical side, analyst EGRAG CRYPTO yesterday identified $1.55 as the first critical trigger level for XRP, with a weekly close above this point weakening the current downward trajectory.

A more decisive breakout above $2.20 would invalidate the bearish descending channel structure that has defined the asset’s price action for months and open the path toward $2.70 to $3.60. At present, XRP is trading around $1.44, up about 3% in 24 hours but down nearly 10% over the past month and more than 60% below its all-time high.

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Adding to the dynamics, exchange outflow data shows a significant increase in XRP withdrawals during February, with total outflows reaching approximately 7.03 billion XRP, the highest level since November 2025.

Binance led the withdrawal volume with outflows of 3.38 billion XRP, indicating a shift in assets from trading environments to private wallets or long-term storage. When withdrawals increase in this manner, it often indicates that a portion of the available supply is being removed from the spot market, potentially reducing liquidity on trading platforms.

With that in mind, traders will likely be focused on whether the combination of negative funding rates and large exchange withdrawals will translate into buying pressure. As Darkfost put it,

“In such uncertain conditions, it becomes essential to carefully select positions, relying on market signals that are beginning to emerge.”

• KuCoin launches KCS PulseDrop to expand the utility of its native token.
• Users earn points from trading, staking, and payments on the platform.
• Initiative aims to embed KCS deeper into KuCoin’s ecosystem utility.

Global crypto exchange KuCoin has launched a new rewards initiative called KCS PulseDrop, marking a strategic step toward expanding the utility of its native token, KuCoin Token (KCS).

The program connects everyday user activity, from trading to payments with a transparent points and rewards system, effectively turning KCS into a more active, multi-dimensional part of the KuCoin ecosystem.

The exchange said PulseDrop is designed to shift KCS “from a passive holding asset” into an engagement-based tool that bridges trading, staking, and real-world cryptocurrency use.

Participating users earn points through actions like futures or spot trading, staking KCS, or making payments with KuCard, P2P, or KuCoin Pay.

Points accumulate over time and determine each user’s share of reward distributions.

In essence, PulseDrop transforms interaction into measurable participation.

KuCoin described the framework as a “participation economy,” one that rewards sustained activity rather than short-term speculation, an idea gaining traction among digital asset platforms seeking to retain users and build long-term loyalty.

By aligning engagement with tangible outcomes, the company hopes to position KCS as a functional utility token underpinning a wider user ecosystem, rather than merely a token conferring fee discounts or passive yield.

Expanding KCS beyond exchange use

The PulseDrop system introduces tiered point mechanics and multipliers that let users accelerate accrual through specific behaviors, such as trading particular project tokens or KCS itself.

Transactions made through fiat and payments channels also contribute to a “Payment Task” score, rewarding real-world crypto usage, a move that ties KuCoin’s growing payments infrastructure more tightly to its core token.

The exchange said the design is meant to balance simplicity and transparency while giving users early exposure to promising projects listed on its platform.

KuCoin positions PulseDrop as both a community engagement tool and a means of democratizing access to project rewards by basing allocations on participation rather than holding size alone.

Analysts view the initiative as part of a wider industry shift, where exchanges seek to extend the relevance of their native tokens beyond transactional perks.

As competition among global exchanges intensifies, platforms like KuCoin, Binance, and OKX are experimenting with loyalty or activity frameworks that embed token value deeper into users’ daily interactions.

KuCoin, which serves over 40 million users across 200 countries, has been steadily expanding its regulated footprint under CEO BC Wong, with recent licensing milestones in Austria (under MiCA) and Australia.

The exchange, recognized by Forbes and Hurun for its innovation and security standards, maintains SOC 2 Type II and ISO 27001:2022 certifications.

By knitting together engagement, rewards, and payments, KCS PulseDrop reflects KuCoin’s broader ambition to create an integrated and participatory digital-asset ecosystem, where token holders play an active, sustained role in shaping its growth trajectory.

The PulseDrop platform is now live on KuCoin’s official website: www.kucoin.com/pulsedrop.

The US Federal Bureau of Investigation (FBI) announced that it had made an arrest related to the theft of more than $46 million in cryptocurrency from the US Marshals Service.

In a Thursday X post, FBI Director Kash Patel said that the bureau had arrested John Daghita, the son of Command Services & Support (CMDSS) president Dean Daghita, after he allegedly gained unauthorized access to wallets managed under the federal asset protection program. Patel said the arrest was carried out by the “French Gendarmerie’s premier elite tactical unit” with the FBI on the island of Saint Martin in the Caribbean.

Patel’s social media post with a photo of a handcuffed Daghita, also included a photo of a suitcase containing cash, several thumb drives, a phone and three devices resembling Trezor hardware wallets. The FBI director did not disclose whether any of the stolen funds had been recovered.

The alleged crypto theft was reported in January by online sleuth ZachXBT, who said that he had traced a wallet linked to Daghita holding about $23 million in digital assets connected to $90 million reportedly seized by the US government in 2024 and 2025. Daghita’s father heads CMDSS, which was awarded a contract by the US Marshals Service in 2024 related to the custody of the seized crypto.

Related: Wallet linked to alleged US seizure theft launches memecoin, crashes 97%

The US Marshals Service confirmed that it was investigating the matter at the time. Patrick Witt, the director of the White House Crypto Council, said in a Jan. 26 X post that he was “on it,” referencing ZachXBT’s claims. Witt had not publicly commented on the arrest as of Thursday.

According to data from BitcoinTreasuries.NET, US authorities, including the Marshals Service, may hold as much as 328,372 Bitcoin (BTC) through various seizures.

South Korean authorities make two arrests related to seized crypto

Daghita’s arrest is the latest example of global law enforcement efforts to recover previously seized assets.

In February, police in South Korea arrested two people allegedly connected to a case in which authorities lost access to 22 BTC, worth about $1.6 million at the time of publication.

The crypto was reportedly stolen after police seized the assets from a hack on a South Korean exchange in 2021, storing them on a cold wallet owned by a third party.

Earlier this week, Deputy Prime Minister and Minister of Strategy and Finance Koo Yun-cheol said the government and relevant agencies will “conduct an inspection of the current status and management practices of digital assets held and managed by the government and public institutions,” according to local media reports.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins