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    Home»Altcoins»US Representative Proposes Legislation to Permit State-Sanctioned Actions Against Cybercriminals
    Altcoins

    US Representative Proposes Legislation to Permit State-Sanctioned Actions Against Cybercriminals

    Ethan CarterBy Ethan CarterAugust 22, 2025No Comments2 Mins Read
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    US Representative Proposes Legislation to Permit State-Sanctioned Actions Against Cybercriminals
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    Arizona representative David Schweikert proposed “The Scam Farms Marque and Reprisal Authorization Act of 2025” in August, aiming to establish neo-privateers — government-sanctioned pirates — to counter cybercriminals posing threats to the United States.

    The legislation empowers the US president to issue letters of marque to “privately armed and equipped persons” hired by the government to “utilize all necessary means” to confiscate property and detain or “punish” cybercriminals considered a threat by the president.

    These threats encompass cryptocurrency theft, pig butchering scams, ransomware assaults, identity theft, unauthorized computer access to acquire sensitive personal or classified data, online password trafficking, and infiltrating computers with harmful code. The bill stated:

    “Criminal organizations engaging in cybercrimes and coerced labor represent a unique and extraordinary risk to the economic and national security of the United States.”

    The bill defined these scams as “acts of war” committed by individuals, organized crime, and foreign nation-states against the US, reviving an 18th-century law that could alter the landscape of cybersecurity and asset seizure if enacted.

    Cybercrime, Hacks
    The Scam Farms Marque and Reprisal Authorization Act of 2025. Source: US Congress

    Related: Crypto crime unit with $250M in seizures expands with Binance

    US could channel seized assets into Bitcoin reserve and national crypto stockpile

    In July, hackers stole over $142 million in crypto, bringing the total for 2025 to over $3 billion. Cryptocurrency obtained through US law enforcement investigations could later be forfeited to the government during court actions.

    In January, US President Donald Trump signed an executive order establishing a Bitcoin and crypto reserve, which can accumulate crypto through budget-neutral methods or asset forfeiture.

    In July, the US federal government filed a civil suit to recover more than 20 Bitcoin (BTC), worth over $2.3 million, seized by the Dallas, Texas, division of the Federal Bureau of Investigation (FBI) during an operation targeting the Chaos ransomware group.

    The US Department of Justice (DOJ) also confiscated $1 million in crypto from the BlackSuit ransomware group during the same period.

    In August, the DOJ authorized the seizure of $2.8 million in crypto from a wallet controlled by Ianis Aleksandrovich Antropenko, who was charged with executing ransomware attacks against individuals and businesses.

    Magazine: Inside a 30,000 phone bot farm stealing crypto airdrops from real users