Bitcoin News Today: U.S. DOJ Seizes 20.2 Bitcoin ($2.4M) from Chaos Ransomware Group May Add to Strategic Reserve

The U.S. Department of Justice has filed a civil complaint to seize 20.2 Bitcoin (BTC), valued at $2.4 million, linked to a member of the Chaos ransomware group, a cybercriminal network suspected of rebranding as Blacksuit [1]. The assets were initially confiscated by the FBI’s Dallas field office on April 15, 2025, and are now subject to forfeiture proceedings [2]. If approved by the court, the seized BTC could be added to the U.S. Strategic Bitcoin Reserve, a federal initiative established under President Donald Trump’s March 2025 executive order. The policy aims to consolidate seized Bitcoin as a long-term national asset, positioning the U.S. as a global crypto leader [3].

The seizure highlights the growing intersection of law enforcement and cryptocurrency regulation. Chaos ransomware, active since 2021, has been linked to over 100 cyberattacks, including breaches targeting critical infrastructure. The DOJ’s ability to trace and confiscate the BTC underscores advancements in blockchain analytics and inter-agency collaboration. However, the move also raises questions about the broader implications of retaining digital assets for strategic purposes rather than auctioning them to the public [4].

The Strategic Bitcoin Reserve, as outlined in the executive order, prohibits the sale of seized Bitcoin and mandates its permanent storage. This approach contrasts with previous practices where law enforcement often liquidated confiscated crypto, potentially influencing short-term market volatility [5]. The reserve’s expansion must remain budget-neutral, with oversight from the Treasury and Commerce Departments. While Bitcoin Treasuries estimates U.S. holdings at 198,012 BTC ($23.54 billion), discrepancies in agency-reported data—such as the U.S. Marshals Service’s 28,988 BTC—suggest actual reserves may be higher [6].

State-level momentum is also shaping the U.S.’s crypto strategy. Inspired by federal efforts, 30 states have introduced legislation to create state-level Strategic Bitcoin Reserves. New Hampshire, Texas, and Arizona have already passed such laws, with New Hampshire allowing investments in digital assets exceeding $500 billion in market cap [7]. These initiatives reflect a broader push to attract crypto-friendly businesses and reinforce the U.S.’s economic leadership in the digital asset space.

Analysts note that the Strategic Reserve’s success depends on transparent governance and legal clarity. The executive order does not specify which federal agency would oversee the reserve, leaving room for institutional ambiguity. Critics also caution that sovereign accumulation of Bitcoin could complicate regulatory frameworks for private markets, though the policy explicitly restricts the reserve to seized assets [8].

The U.S. is not alone in exploring sovereign crypto holdings. However, its approach—prioritizing long-term strategic accumulation over immediate liquidation—sets a distinct precedent. By integrating seized Bitcoin into national reserves, the government may aim to stabilize the market while asserting economic dominance in an evolving digital landscape. The case also underscores the challenges of managing decentralized assets within centralized legal systems, particularly as ransomware tactics grow more sophisticated.

Sources:

[1] Coinpedia, The U.S Seizes $2.4M in Bitcoin, May Add to Strategic Reserve (https://coinpedia.org/news/the-u-s-seizes-2-4m-in-bitcoin-may-add-to-strategic-reserve/)

[2] Ground, Dallas, TX Breaking News Headlines (https://ground.news/interest/dallas)

[3] BitDegree, Feds Chase $2.4M in Bitcoin Tied to Chaos Ransomware (https://www.bitdegree.org/crypto/news/us-feds-chase-2-4-million-in-bitcoin-tied-to-chaos-ransomware-group)

[4] MEXC, US Seeks to Claim $2.4M in Bitcoin Seized from Ransomware Group (https://www.mexc.com/news/us-seeks-to-claim-2-4m-in-bitcoin-seized-from-ransomware-group/62679)

[5] Cointelegraph, Latest News on Cryptocurrency (https://cointelegraph.com/category/latest-news)

[6] CryptoRank, US Seeks to Claim $2.4M Bitcoin Seized from Chaos (https://cryptorank.io/news/feed/ac50e-us-seeks-to-claim-2-4m-bitcoin-seized-from-chaos-ransomware-group)

[7] National Law Review, State-Level Strategic Bitcoin Reserves (https://www.natlawreview.com)

[8] Coinpedia, Bitcoin Strategic Reserve (https://coinpedia.org/news/is-pi-network-a-scam-analyst-explains-why-65m-users-changed-everything/)