5 Key Points in Homeland Security Probe into Digital Bank Practices

Homeland Security Investigates Anchorage Digital Bank

The U.S. Department of Homeland Security’s El Dorado Task Force has launched a probe into Anchorage Digital Bank, examining potential financial crimes within the cryptocurrency sector. This investigation hints at the firm’s cross-national activities and focuses on allegations surrounding international money laundering.

Background and Context

The recent Homeland Security probe into digital bank practices is a significant development that underscores ongoing concerns regarding regulatory compliance in the cryptocurrency sector. Established in 1992, the El Dorado Task Force focuses on combating international financial crimes, particularly transnational money laundering. Anchorage Digital, co-founded in 2017 and known for being the only federally chartered crypto bank in the U.S., now faces scrutiny for alleged deficiencies in operational practices, a situation that recalls previous regulatory challenges faced by other financial institutions evolving into the digital age.

Ironically, despite its national trust bank charter obtained in January 2021, Anchorage has already encountered hurdles, evidenced by a consent order from the OCC in April 2022 for lapses in compliance with the Bank Secrecy Act. As Anchorage expands its digital footprint, servicing clients such as BlackRock and Cantor Fitzgerald, this recent probe reveals a heightened vigilance from regulatory bodies in the increasingly intertwined realms of finance and cryptocurrency. The implications of this investigation may ripple throughout the market, influencing investor confidence and institutional engagement with digital assets.

Anchorage Digital Faces Increased Scrutiny

The news of a Homeland Security probe into digital bank practices comes as Anchorage Digital, a prominent cryptocurrency firm, finds itself in the spotlight. The El Dorado Task Force of the US Department of Homeland Security, primarily focused on combatting financial crimes like international money laundering, has reportedly reached out to former employees to investigate Anchorage’s compliance and operational practices.

Focus of the Investigation

Details about the probe remain scarce, though sources familiar with the matter indicate it centers around potential financial improprieties within Anchorage. The El Dorado Task Force, established in 1992, has a history of addressing transnational money laundering allegations. Earlier reports from Barron’s indicated that Anchorage Digital, co-founded by Diogo Mónica and Nathan McCauley, is under examination specifically due to its cross-border activities, which include operations in Singapore and Portugal.

Regulatory Challenges Ahead

Despite being the first federally chartered crypto bank in the United States, receiving its national trust bank charter in January 2021, Anchorage has navigated significant regulatory hurdles. Last year, the Office of the Comptroller of the Currency (OCC) issued a consent order highlighting deficiencies in the company’s Bank Secrecy Act and Anti-Money Laundering compliance programs. In response, Anchorage was required to establish oversight committees to rectify these issues.

Anchorage’s stature in the cryptocurrency ecosystem is significant, managing over $50 billion in assets and catering to institutional clients, including BlackRock and Cantor Fitzgerald. However, as regulatory scrutiny ramps up, the future of Anchorage’s operations may be at stake.

While Anchorage has not provided official commentary on the ongoing investigation, the implications of the Homeland Security probe into digital bank practices highlight a critical moment for crypto banks in the rapidly evolving financial landscape.

Analysis of Homeland Security Probe into Digital Bank Practices

The recent probe by the US Department of Homeland Security into Anchorage Digital Bank underscores the increasing scrutiny that cryptocurrency firms face amid rising regulatory expectations. As the only federally chartered crypto bank in the U.S., Anchorage’s situation highlights the complex regulatory landscape that digital institutions must navigate.

The El Dorado Task Force’s investigation, which focuses on international money laundering and financial crimes, signals that even established entities are not immune to regulatory challenges. This could potentially reshape industry practices, compelling digital banks to strengthen compliance frameworks to alleviate concerns over financial crimes.

For the market, this scrutiny may lead to a cautious approach from investors and stakeholders, especially as Anchorage has previously faced compliance issues under the Bank Secrecy Act. As institutional investor demand for cryptocurrency increases, evidenced by a 2025 EY survey showing growing allocations to digital assets, Anchorage’s challenges emphasize the urgent need for enhanced regulatory clarity and robust compliance in the burgeoning crypto landscape.