The Chaos ransomware gang has been dealt a significant blow as the FBI seized over $2.4 million worth of cryptocurrency from their operations. The federal government is now seeking forfeiture of the funds, marking a major win in the fight against cybercrime.
According to FBI Dallas, 20.2 Bitcoin was seized on April 15, 2025, from a cryptocurrency address linked to a member of the Chaos ransomware gang. At the time of seizure, the Bitcoin was valued at $1.7 million, but upon public disclosure on July 28, its worth had risen to over $2.4 million.
Chaos ransomware is said to have ties to the BlackSuit/Royal gang, with recent reports from Cisco Talos indicating that they have launched numerous attacks across various sectors. The group has been implicated in ransomware attacks in the Northern District of Texas.
In response to the seizure, the US government has filed a civil complaint in the Northern District of Texas seeking forfeiture of the cryptocurrency. The funds are believed to be connected to unlawful activities such as money laundering and extortion related to ransomware attacks. This move is part of a broader strategy to combat cybercrime and hold perpetrators accountable.
In a significant development, US President Donald Trump signed an Executive Order in March 2025 to establish a Strategic Bitcoin Reserve and a US Digital Asset Stockpile. The reserve is funded with forfeited bitcoin owned by the Department of Treasury, with structured liquidation policies in place to ensure responsible management of seized assets.
For the government to secure forfeiture of the seized cryptocurrency, they must provide evidence linking the funds to criminal activities. This marks a crucial step in the ongoing efforts to combat ransomware and other forms of cybercrime, demonstrating a commitment to protecting individuals and businesses from malicious online threats.