US Moves to Seize $2.4M in Bitcoin from Notorious Chaos Ransomware Gang

The US government just made its biggest crypto power play yet—targeting the Chaos ransomware group's ill-gotten Bitcoin haul.

Feds swipe $2.4M BTC from cybercriminals

Law enforcement finally caught up with the digital outlaws, clawing back nearly a quarter-billion dollars' worth of cryptocurrency. The seizure exposes ransomware gangs' fatal flaw—their love affair with transparent blockchain ledgers.

While Treasury officials pop champagne, Wall Street bankers are probably sulking—after all, $2.4M in BTC would've barely covered their average lunch tab during the 2021 crypto boom.

From The Dallas FBI to The US Government

The Dallas FBI executed the seizure as part of ongoing efforts to combat ransomware operations that have increasingly relied on cryptocurrency for payments and money laundering.

The complaint alleges that the bitcoin constitutes proceeds from unlawful activities, including extortion and computer damage.

United States files a civil complaint in the Northern District of Texas seeking the forfeiture of over $1.7 million worth of cryptocurrency seized by Dallas FBI https://t.co/igkG3c1D6G @FBIDallas

The action comes amid massive law enforcement success in tracking and seizing cryptocurrency linked to cybercrime.

Federal agencies have recovered billions in digital assets from ransomware groups, dark web marketplaces, and international fraud networks over the past year.

Recent major seizures include $225.3 million in USDT tied to pig butchering investment scams, $31 million from the 2021 Uranium Finance hack, and $24 million from Russian national Rustam Gallyamov linked to Qakbot malware operations.

The DOJ has indicated that seized cryptocurrency assets may contribute to President Trump’s proposed Strategic Bitcoin Reserve rather than being sold at auction.

Global Enforcement Surge Targets Billion-Dollar Crypto Crime Networks

Law enforcement agencies have achieved significant success in dismantling cryptocurrency-based criminal enterprises, with international operations resulting in the seizure of billions of dollars’ worth of digital assets.

Operation SpecTor alone targeted dark web drug markets, resulting in 270 arrests and confiscation of over two metric tons of drugs alongside $200 million in cryptocurrency across nine countries.

In February, the DOJ seized $31 million in cryptocurrency linked to the 2021 Uranium Finance hack, following nearly four years of investigation.

US law enforcement seizes $31M in cryptocurrency linked to the 2021 Uranium Finance exploit, according to SDNY @SDNYnews.#UraniumFinance #DeFiHackshttps://t.co/mnHFNg0AYn

The recovery followed coordinated efforts with Homeland Security Investigations to trace funds laundered through Tornado Cash mixers and cross-chain bridges.

Similarly, in May, federal prosecutors charged Rustam Gallyamov, a Russian national accused of developing Qakbot malware since 2008, with seizing over $24 million in Bitcoin and stablecoins.

The malware infected thousands of computers worldwide, creating botnets used for ransomware deployment by groups including REvil, Conti, and Black Basta.

Most recently, the BidenCash dark web marketplace generated $17 million in revenue by selling over 15 million stolen credit cards before authorities seized 145 associated domains.

The operation led by the US Secret Service and the FBI involved international partners, including the Dutch National Police.

International cooperation has expanded enforcement reach, with authorities in nine countries participating in major takedowns.

South Korean police bust fake crypto exchange ring processing $694.5 million in illegal transactions, seizing $3.2 million worth of hidden Ethereum and assets.#SouthKorea #Cryptohttps://t.co/vppBfNnM5e

South Korean prosecutors recently seized $3.2 million worth of ethereum from fraud rings using overseas payment platforms to evade detection.

Strategic Bitcoin Reserve Plans Transform Seized Asset Policy

President Trump’s executive order establishing a Strategic Bitcoin Reserve has fundamentally altered the government’s approach to seized cryptocurrency assets.

The reserve will utilize approximately 200,000 Bitcoin previously confiscated through law enforcement operations rather than selling assets at auction.

Bitwise CIO Matt Hougan argues the reserve eliminates the final existential threat to Bitcoin by removing fears of government prohibition.

@BitwiseInvest CIO @Matt_Hougan believes @realDonaldTrump's executive order to establish a Bitcoin Reserve has eliminated the final major threat to Bitcoin’s viability.#Trump #Bitcoinhttps://t.co/whCYlgRrzY

The policy shift means future seizures may contribute to national cryptocurrency holdings rather than generating immediate revenue through sales.

Previously, the DOJ received approval to sell 69,370 Bitcoins, worth approximately $6.5 billion, seized from the Silk Road. However, the new administration’s reserve policy may redirect such assets.

Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are exploring budget-neutral acquisition strategies using surplus funds.

Approximately 103,500 Bitcoins are expected to remain in long-term government custody, while 94,636 Bitcoins from the Bitfinex hack will be returned to the victims of the crime.

The reserve structure provides a framework for managing future cryptocurrency seizures from ongoing enforcement operations.