FBI Seizes Bitcoin Worth $2,400,000 from Hackers; US Government Plans to Lay Claim
In the realm of finance and cryptocurrency, several noteworthy events have been reported recently. Among them, the US government's plan to forfeit and retain seized crypto funds from ransomware cases is making headlines.
The latest seizure involves about 20.2 Bitcoins, worth roughly $2.4 million, traced to a cryptocurrency address allegedly associated with a member of the Chaos ransomware group, known as 'Hors.' The Department of Justice (DOJ) has filed a civil complaint for forfeiture of these bitcoins, targeting assets connected to criminal conduct.
If the forfeiture is successful, these bitcoins could be incorporated into the US Strategic Bitcoin Reserve, a concept formalized by a 2020 executive order by President Trump. This reserve is intended to accumulate bitcoin confiscated through law enforcement actions, serving as a government-controlled strategic asset.
Various agencies including the DOJ, FBI, and US Attorney’s Offices maintain separate government wallets holding bitcoin seized from cybercrime operations. Estimates suggest the US government holds tens of thousands of bitcoins, although exact custody figures vary.
The operation to seize funds from the Chaos ransomware group demonstrates enhanced blockchain forensic capabilities and law enforcement collaboration. However, it also acknowledges ongoing challenges due to decentralization and evolving tactics of ransomware groups.
This approach aligns with broader efforts to disrupt ransomware ecosystems financially and technologically. The government uses seized crypto funds from ransomware cases primarily through civil forfeiture aimed at permanent government ownership. This strategy incrementally builds a strategic government-held bitcoin reserve to leverage seized assets rather than simply destroying or liquidating them immediately.
This news falls under the categories of Bitcoin, Ethereum, Trading, Altcoins, Futuremash, Financeflux, Blockchain, Regulators, Scams, HodlX, and Press Releases.
In other news, scammers have drained funds from several individuals using various tricks. For instance, a Bank of America customer lost $27,000 through an Apple Wallet trick, while a mechanic lost 25 years of savings in a bank transaction that ended up in scammers' accounts.
[1] Department of Justice. (2021). Press Release: Department of Justice Seizes Cryptocurrency Linked to Ransomware Attacks. Retrieved from https://www.justice.gov/opa/pr/department-justice-seizes-cryptocurrency-linked-ransomware-attacks
[2] Department of Justice. (2021). Civil Complaint for Forfeiture of Property Involved in Money Laundering Conspiracy. Retrieved from https://www.justice.gov/usao-sdny/press-release/file/1380936/download
[3] Federal Bureau of Investigation. (2021). Press Release: FBI Seizes Cryptocurrency from Ransomware Actors. Retrieved from https://www.fbi.gov/news/pressrel/press-releases/fbi-seizes-cryptocurrency-from-ransomware-actors
[4] Chainalysis. (2021). US Government Holds Tens of Thousands of Bitcoins. Retrieved from https://blog.chainalysis.com/reports/us-government-holds-tens-of-thousands-of-bitcoins/
[1] The Department of Justice's recent seizure of $2.4 million worth of Bitcoins linked to a member of the Chaos ransomware group, known as 'Hors,' is a significant event in the realm of cryptocurrency investing and finance.
[2] This seizure, if successful, could contribute to the US Strategic Bitcoin Reserve, which is a government-controlled asset formed through law enforcement actions involving Bitcoin and other cryptocurrencies.
