Cyberattacks on the Rise in the Crypto World
The year 2025 has started on a grim note for the crypto industry. The infamous North Korean-backed Lazarus Group recently stole $1.4 billion from Bybit, one of the largest crypto exchanges. This was one of the biggest hacks in crypto history. In 2024 alone, hackers looted over $2 billion worth of digital assets, with more than half of the stolen funds traced directly to Lazarus Group.
đš Crypto entrepreneurs are increasingly vulnerable, and every successful hack poses a direct threat to U.S. national security.
đš The Trump administration aims to position the U.S. as the "crypto capital of the world," but unresolved security concerns jeopardize this goal.
đš Pariah states like North Korea continue to sponsor cybercriminal groups, escalating tensions between the private sector and digital attackers.
To address this growing crisis, the U.S. could look to its pastâreviving the historical concept of "privateering" as a modern solution to cyber threats.
Privateers in History: A Blueprint for Cyber Warfare?
Privateering was a government-authorized practice in which privately owned warships attacked enemy trade. This was a common strategy during the American Revolution and the War of 1812, helping to counter Britain's naval superiority.
đš Privateers were granted "letters of marque and reprisal" by the government, allowing them to legally seize enemy assets.
đš Financial incentives played a key role, as successful privateers could keep a portion of their spoils.
đš The U.S. Constitution still grants Congress the authority to issue such letters, though the practice has been dormant for over 200 years.
With cyberattacks becoming a new form of warfare, modernizing privateering for the digital age could provide an innovative defense strategy.
Neo-Privateers: Fighting Hackers with Hackers
A 21st-century privateering program would allow U.S. companies and individuals to legally target hostile cyber operations.
đš Counter-hacking measures â Privateers could legally seize funds from wallets and accounts controlled by sanctioned entities and rogue states.
đš Legal immunity â Participants would receive protection from U.S. prosecution, provided their actions comply with program regulations.
đš Financial rewards â A portion of recovered assets would be shared between the privateers and the U.S. government.
As the U.S. seeks cost-effective cybersecurity solutions, neo-privateering could be a strategic and impactful approach.
Why Now Is the Right Time
â ď¸ Government agencies like the FBI and DHS have limited capacity, while the private sector possesses the expertise and agility to act swiftly.
â ď¸ AI and deepfake technologies are making cyberattacks more sophisticated, meaning the U.S. must adopt proactive and aggressive countermeasures.
â ď¸ Elon Muskâs Department of Government Efficiency (DOGE) is focused on reducing government spending, making privately funded solutions even more attractive.
Congress Must ActâAnd Fast
With over 300 pro-crypto members in Congress, leaders like Senator Cynthia Lummis and Congressman Tom Emmer could play a crucial role in implementing a neo-privateering program.
đ By adopting this approach, the U.S. would not only protect its entrepreneurs but also reaffirm its leadership in technology and cybersecurity.
đ The crypto industry would welcome such a move, as it would introduce a new level of protection against cyber threats.
The time has come for the United States to embrace its history and establish modern cyber-privateersâto protect innovation, businesses, and national security.
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