US Bill Wants Cyber Pirates to Hunt Down Crypto Thieves

Key Insights

• Arizona lawmaker David Schweikert recently introduced a bill to authorize cyber privateers against crypto criminals.
• The proposal is a revival of the 18th-century "letters of marque," which allows private actors to seize assets and arrest cybercriminals.
• The initiative comes as US agencies seize millions in stolen crypto and build a national reserve.

The United States is considering a major proposal that could change how it tackles online threats. Arizona Representative David Schweikert recently introduced the Scam Farms Marque and Reprisal Authorisation Act.

This bill would revive the centuries-old concept of privateers, but apply it to modern cybercrime.

How the Bill Defines the Threat

As the law proposes, the US president could issue "letters of marque" to authorise private individuals or companies to go after cybercriminals. These government-sanctioned individuals/companies would be allowed to seize digital assets, arrest suspects and crack down on operations linked to crypto theft, ransomware, identity fraud, and general code attacks.

Supporters argue that the US lacks the tools to counter this surge in cybercrime, which has already cost citizens billions. Critics, however, are warning of the legal risks if private actors are unleashed in cyberspace.

The bill itself describes cybercrime as an "act of war," and puts it on the same level as traditional national security threats. Said bill classifies crimes like theft of cryptocurrencies, ransomware attacks, pig butchering scams, unauthorized computer access to steal data and trafficking in stolen passwords, among other crimes, as punishable under US law

David Schweikert pointed out that organised cybercrime rings, those backed by foreign governments, are an "extraordinary threat" to US economic and national security. He says that by reviving letters of marque, the US could bring the fight to cyber criminals, rather than reacting only after attacks.

Rising Losses From Crypto Crime

The timing of the proposal shows the scale of online crime. Last year alone saw Americans lose $16.6 billion to scams, in the highest figure in 25 years of record-keeping. By the middle of this year, criminals had already stolen more than $3 billion in crypto, including $142 million in July alone.

The Department of Justice (DOJ) has responded by aggressively targeting ransomware networks and seizing their assets.

Some of the most recent cases include $2.8 million in crypto from a wallet linked to Ianis Aleksandrovich Antropenko, accused of deploying the Zeppelin ransomware.
Others are $2.3 million in Bitcoin from the Chaos ransomware group and $1 million in crypto from the BlackSuit ransomware operation.

Building a National Crypto Reserve

President Donald Trump recently signed an executive order in January to create a national Bitcoin and crypto reserve. The plan only allows assets to be added through budget-neutral methods like forfeiture from criminal investigations.

The DOJ has been one of the biggest players in building this reserve. Its Computer Crime and Intellectual Property Section (CCIPS) has seized more than $350 million in crypto since 2020 and secured convictions in over 180 cybercrime cases.

The US plans to channel these seized assets into a federal reserve and effectively turn the proceeds of crime into a strategic resource.

Human Rights Dimension of Cybercrime

The bill also points out a lesser-known aspect of cybercrime: Forced labor.

Reports show that in regions like Myanmar and China, trafficked individuals are forced into running online scams. These human rights abuses add another layer of urgency to the problem.

Overall, the bill leaves it to the president to decide who qualifies as a threat, how many privateers to commission and what actions they can take. Such wide discretion will need the right kind of oversight to prevent misuse.

What Happens Next

The Scam Farms Marque and Reprisal Authorisation Act is still under review in Congress. If it is passed, it would mark the first time in modern history that the US has used letters of marque outside of maritime warfare.

Considering the rise in crypto crime and ransomware, lawmakers may see this change as necessary. Still, its success will depend on whether Congress can balance aggressive action with the need to avoid legal chaos.

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