A new proposal in Congress could give the President sweeping powers to unleash private actors against foreign-based crypto criminals.
Representative David Schweikert has filed House Resolution 4988, a measure that revives the centuries-old practice of “letters of marque and reprisal.” Once used in the age of naval warfare to authorize privateers to capture enemy ships, the concept would be reimagined for the digital era, targeting hackers and cybercriminal groups stealing billions in crypto.
Under the plan, approved private individuals or companies could be tasked with recovering stolen assets or disrupting the operations of hostile foreign networks. They would be authorized to use “all means reasonably necessary” in pursuit of U.S. interests, though strict accountability requirements, including security bonds, would accompany any letter issued.
A New Digital Battlefield
Schweikert argues that traditional enforcement methods are no longer enough to counter the wave of sophisticated crypto hacks. “Americans deserve protection from digital predators who exploit outdated laws and hide in foreign jurisdictions,” he said, emphasizing that the legislation is designed to restore accountability on a “digital battlefield.”
The bill is now in the hands of the House Committee on Foreign Affairs. If it clears Congress and is signed into law, it would mark the first time in modern history that private actors could be formally deployed by the U.S. government to combat cybercrime abroad.
Context: Hacks on the Rise
The proposal comes as frustration mounts over record-breaking thefts in 2025. North Korea’s Lazarus Group alone has been linked to a $1.5 billion exploit against Bybit in February, alongside major breaches involving India’s CoinDCX and other global platforms. Despite international cooperation, law enforcement has rarely been able to recover funds or prosecute the masterminds.
By introducing H.R. 4988, Schweikert hopes to bridge that gap, effectively mobilizing private expertise against state-sponsored hackers and decentralized criminal networks.
If passed, the legislation could redefine how the U.S. responds to crypto-related crime—transforming enforcement from reactive investigations into proactive missions to track down and reclaim stolen digital assets.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/new-u-s-law-could-let-citizens-hunt-down-crypto-criminals-overseas/