Opinion by: Christopher Perkins and J. Christopher Giancarlo
Regarding cybersecurity in the crypto industry, 2025 is off to a terrible start. Lazarus Group, a North Korean-sponsored hacking organization, recently stole $1.4 billion from Bybit, a major crypto exchange. This was one of the largest hacks in the crypto industry’s history. In 2024 alone, hackers pillaged their way across the sector, stealing over $2 billion. Over half can be directly traced to Lazarus Group, which diverts stolen digital assets to various illicit activities. The status quo is unacceptable.
A brief history of privateering
Privateering is a governmental authorization of private enterprises to engage in hostilities against the commerce of national enemies. It allows sovereigns to marshal unconventional resources and supplement military power at low cost. Privateering has a rich and colorful history in the United States. The legendary exploits of privateers like John Paul Jones, who later became the “Father of the American Navy,” helped turn the tide of the American Revolution. American privateering was born out of necessity. In an era when America did not have adequate public resources to confront the Royal Navy, patriotic private citizens, further incentivized through the prospect of financial gain, crippled the British commercial fleet.
The solution: Neo-Privateers
To find the solution to this problem on the frontier of technology, America should look to its past. The resurrection of letters of marque and reprisal, which commission “privateers” to seize property or assets belonging to specific foreign adversaries, would immediately close this gap in national security. Through financial incentives, a neo-privateer program would unleash the private sector’s talent, ingenuity, and sophistication to hack the hackers — effectively turning the predators into prey.
How it would work
A 21st-century privateer program would issue letters of marque and reprisal to American companies or individuals to hack wallets and retrieve funds controlled by OFAC-sanctioned governments, entities, or individuals. Recipients would be immune from US prosecution for their activities directly related to executing this mission. For example, neo-privateers could transact directly with OFAC-sanctioned wallets and entities. Proceeds from the sale of the assets would be shared with the privateers based on pre-arranged contracts.
Conclusion
The time has come for the United States to embrace its history and launch a neo-privateer program. Letters of marque and reprisal provide an elegant solution to protect American innovation and its national security.
Frequently Asked Questions
Q: What is privateering?
A: Privateering is a governmental authorization of private enterprises to engage in hostilities against the commerce of national enemies.
Q: How does this relate to the crypto industry?
A: A neo-privateer program would issue letters of marque and reprisal to American companies or individuals to hack wallets and retrieve funds controlled by OFAC-sanctioned governments, entities, or individuals in the crypto industry.
Q: What are the benefits of a neo-privateer program?
A: It would provide a low-cost, flexible, and effective option to address unconventional national security challenges, leveraging the private sector’s talent and sophistication to hack the hackers and turn them into prey.
