Reviving 18th-Century Legal Tools to Hunt 21st-Century Crypto Thieves

U.S. Representative David Schweikert (AZ-01) has introduced the Cybercrime Marque and Reprisal Authorization Act of 2025 (H.R. 4988), a bill that would revive the constitutional authority to issue letters of marque and reprisal to combat foreign cybercriminal enterprises targeting American interests [3]. The proposed legislation, which draws from historical maritime law, allows the executive branch to deputize private cyber operators to pursue and disrupt overseas cybercrime syndicates, including those involved in large-scale cryptocurrency thefts [4]. Schweikert argues that existing tools are inadequate to address the growing threat from state-backed and sophisticated criminal networks operating beyond U.S. jurisdiction [3].

The bill is part of a broader legislative and enforcement response to a surge in high-profile cyberattacks on cryptocurrency platforms and individuals. In 2025 alone, crypto-related thefts have exceeded $2.17 billion, with North Korea’s Lazarus Group responsible for one of the largest breaches—$1.5 billion from ByBit [5]. These attacks are often carried out using techniques like SIM swapping, phishing, and social engineering, which have enabled groups like Scattered Spider to infiltrate both corporate and individual accounts [1]. The U.S. Department of Justice has taken significant steps against these actors, including the sentencing of Noah Urban, a 20-year-old linked to Scattered Spider, who was recently given a 10-year prison term and ordered to pay $13 million in restitution [1].

Schweikert’s proposal is not the only initiative aiming to address the gap in enforcement. Independent crypto sleuths and researchers, such as the anonymous figure known as ZachXBT, have emerged as key players in tracking stolen assets and exposing fraud. These individuals often operate outside traditional law enforcement, using blockchain analysis and open-source intelligence to trace and recover lost funds [5]. Their work has highlighted systemic failures in the legal and technological frameworks currently in place, including jurisdictional barriers, lack of cooperation between law enforcement and private actors, and outdated laws that hinder recovery efforts.

The Cybercrime Marque and Reprisal Authorization Act seeks to address these issues by enabling the U.S. government to leverage private-sector expertise while maintaining federal oversight. The proposed law would require any licensed operator to post a security bond to ensure compliance with the terms of their commission [4]. This mechanism aims to balance innovation and accountability, allowing for swift and targeted actions against cybercriminals who exploit legal gray areas and operate from jurisdictions with weak enforcement capabilities.

The introduction of H.R. 4988 has sparked debate over the risks and benefits of empowering private actors in cybercrime enforcement. Critics argue that the proposal could lead to overreach and lack of transparency, while supporters contend it is a necessary step in the evolving battle against global cyber threats. The bill is currently under review by the House Committee on Foreign Affairs and must pass both chambers of Congress before being sent to the President for approval [4].

Source:

[1] Palm Coast man linked to 'Scattered Spider' cybercrime gang sentenced to 10 years for cryptocurrency theft (https://www.news4jax.com/news/local/2025/08/20/palm-coast-man-linked-to-scattered-spider-cybercrime-gang-sentenced-to-10-years-for-cryptocurrency-theft/)

[2] Scattered Spider Hacker Gets 10 Years, $13M Restitution (https://thehackernews.com/2025/08/scattered-spider-hacker-gets-10-years.html)

[3] Schweikert Introduces Cybercrime Marque and Reprisal Authorization Act to Combat Foreign Scam Syndicates (https://schweikert.house.gov/2025/08/20/schweikert-introduces-cybercrime-marque-and-reprisal-authorization-act-to-combat-foreign-scam-syndicates/)

[4] US explores radical legal tool to fight overseas crypto thefts (https://cryptoslate.com/us-may-revive-18th-century-letters-of-marque-to-fight-2025-crypto-mega-hacks/)

[5] Crypto's biggest sleuth has 10 shocking questions on hacks (https://www.thestreet.com/crypto/innovation/cryptos-biggest-sleuth-has-10-shocking-questions-on-hacks)