US Government Employs 'Cyber Privateering' Against Crypto-Related Crime

The US government has adopted an unconventional approach to combatting cryptocurrency-related crime by embracing 'cyber privateering.' On August 12, 2026, President Donald Trump signed a National Security Presidential Memorandum (NSPM) allowing vetted private companies to conduct government-directed offensive cyber operations against transnational criminal organizations.

The new framework builds on Executive Order 14390, which established an operational cell within the National Coordination Center for coordinating cybercrime detection and response efforts between federal agencies and the private sector. Participating private firms receive legal protections but are subject to stringent government oversight, requiring dual-agency sign-offs for every operation.

The Senate has introduced S.5000, the Cyber Letters of Marque and Reprisal Act, which would grant the President explicit statutory authority to authorize private entities to conduct cyber operations against foreign threats. This shift in policy represents a move away from a purely defensive posture, with the government now endorsing limited offensive measures to combat crypto-enabled crime.

The framework targets criminal behavior rather than specific cryptocurrencies or tokens, aiming to dismantle infrastructure that supports illicit flows, including mixers, fraud operations, and ransomware-as-a-service platforms. The approach seeks to channel private sector expertise toward recovering stolen funds and disrupting the infrastructure supporting these networks.