Cybersecurity in the Crypto Industry: A Call to Action

In the tumultuous start of 2025, the crypto industry faced a significant blow as the Lazarus Group, a North Korean-backed hacking syndicate, orchestrated a heist of $1.4 billion from Bybit, a prominent crypto exchange. This brazen act marked one of the largest cyber breaches in the sector's history, adding to the $2 billion stolen by hackers in 2024, with a substantial portion linked directly to the Lazarus Group.

As the digital economy reels from these attacks, it is evident that the existing cybersecurity measures are inadequate. Pariah states continue to support hacking groups that target entrepreneurs, jeopardizing not only financial assets but also national security. The United States' ambition to lead as the "crypto capital of the planet" faces a formidable challenge from these adversarial forces.

The Case for Modern Privateering

To combat these threats on the technological frontier, a bold proposal emerges from the past: the revival of letters of marque and reprisal. This historical practice, dormant for two centuries, authorized privateers to target specific foreign adversaries' assets, offering a novel approach to enhance national security in the digital age.

• Privateering allows leveraging the private sector's talent and resources to counter cyber threats effectively.
• It provides a cost-effective means to supplement traditional military capabilities in safeguarding national interests.

A 21st-Century Solution

By issuing modern letters of marque and reprisal, American entities could be empowered to target digital assets controlled by sanctioned governments or individuals. Immune from prosecution for their sanctioned activities, these neo-privateers could disrupt illicit activities and reclaim stolen funds, enhancing cybersecurity in the crypto industry.

The Legal Foundation

The U.S. Constitution's provision for granting letters of marque and reprisal underscores the legitimacy of such a program. With a historical precedent and legal framework in place, the implementation of a modern privateer initiative aligns with the nation's founding principles.

Empowering the Crypto Industry

With the advent of advanced technologies like artificial intelligence posing new challenges, a neo-privateer program offers a proactive defense strategy. By harnessing the expertise of private actors, the government can focus on critical security concerns while bolstering the resilience of the crypto ecosystem.

A Call to Action

As the crypto industry grapples with escalating cyber threats, swift action is imperative. Congressional support, led by crypto advocates like Senator Cynthia Lummis and Congressman Tom Emmer, can pave the way for a modern privateer program. This initiative promises to fortify cybersecurity, safeguard innovation, and uphold national security interests in the digital realm.

Conclusion

The time has come for the United States to embrace innovation and historical precedent to secure its digital future. A neo-privateer program, rooted in tradition yet tailored for modern challenges, holds the key to a resilient and secure crypto industry.

Opinion by: Christopher Perkins and J. Christopher Giancarlo

This article is for general information purposes and does not constitute legal or investment advice. The views expressed here are solely those of the authors and do not necessarily reflect the opinions of Cointelegraph.