On August 25, the U.S. Court of Federal Claims denied a digital asset firm’s request for a preliminary injunction that sought to halt the performance of a government contract — awarded by the U.S. Marshals Service to a competing provider — for the management and disposal of seized cryptocurrencies. The firm alleged that the contract award resulted from an unfair evaluation process and violated federal procurement law. It also argued that the competing provider lacked the necessary licenses and therefore should have been disqualified from consideration.
The court concluded that the firm failed to demonstrate a likelihood of success on the merits or the presence of irreparable harm, thereby allowing the government contract to proceed. In its opinion, the court found that the U.S. Marshals Service “abided by the terms of its solicitation” in rejecting the firm’s proposal, emphasizing that the solicitation required contractors to be capable of retaining unsupported assets indefinitely without converting them. The court observed the firm “intentionally submitted a proposal” that deviated from the performance work statement’s requirements and “disregarded the clarifying Q&A responses.”
Based on these findings, the court determined that the agency’s evaluation of proposals was reasonable and consistent with the solicitation’s terms. As to the firm’s claim that the awardee lacked necessary licenses, the court noted that while the solicitation required offerors to describe compliance with applicable laws and regulations, it did not mandate proof of licensure at the proposal stage. The court therefore concluded the firm failed to meet its burden for injunctive relief and denied the motion.
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