A contemporary privateer program would safeguard American business owners, advance national security objectives, and play a crucial part in reclaiming American leadership in science and technology after a 200-year break.
2025 is off to a really bad start in terms of cybersecurity in the cryptocurrency sector. Recently, the North Korean-sponsored hacker group Lazarus Group took $1.4 billion from Bybit, a significant cryptocurrency exchange. One of the biggest hacks in the history of the cryptocurrency sector was this one. Hackers stole more than $2 billion in 2024 alone as they pillaged the industry. The Lazarus Group, which redirects stolen digital assets to different illegal activities, is directly responsible for more than half. The current situation is intolerable.
Hacking organizations that target entrepreneurs and devastate the digital economy are still armed, sponsored, and resourced by Pariah regimes. Government capacities and policies have failed. Entrepreneurs are still vulnerable, and every exploit has clear ramifications for national security. The Trump Administration’s declared objective of making the US the “crypto capital of the planet” is currently thwarted by these enemies.
America should look to its history to find a solution to this technologically advanced dilemma. Reviving letters of marque and reprisal, which order “privateers” to confiscate assets or property belonging to certain foreign enemies, would rapidly bridge this national security gap, despite the fact that they have been inactive for the past 200 years. A neo-privateer program would convert the predators into prey by using financial incentives to unleash the skill, creativity, and sophistication of the private sector to hack the hackers.
An overview of privateering’s past
Privateering is when the government gives private companies permission to fight against the trade of adversaries of the country. It enables low-cost military power supplementation and the mobilization of unconventional resources by sovereigns. In the United States, privateering has a long and varied history. The American Revolution was partially reversed by the fabled exploits of privateers like as John Paul Jones, who went on to become the “Father of the American Navy.” Privateering in America began as a necessity. Patriotic private persons, further motivated by the possibility of financial gain, crippled the British commercial fleet during a time when America lacked the public resources necessary to take on the Royal Navy.Although letters of marque and reprisal gave private individuals the right to confiscate assets or property that belonged to particular foreign governments, they also mandated that seizures be reported, exempted privateers from some piracy laws, and permitted them to keep a share of the loot. Privateers frequently had to deposit bonds to guarantee that their actions adhered to rules.
Recent: Bybit hackers stole $1.4 billion in cryptocurrency, according to chainalysis
While European nations effectively outlawed privateering with the Declaration of Paris in 1856, the United States did not sign the treaty, maintaining the option to use privateers in future conflicts. The United States has a solid legal foundation for a modern-day privateer program. The Founding Fathers enshrined privateering in the Constitution, giving Congress the authority “to declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water.” During the War of 1812, James Madison issued 500 of these letters to privateers.
Neo-privateers
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.
A cheap, adaptable, and efficient solution to unusual national security issues would be provided via letters of marque and retaliation. It is costly to use additional public monies to build the specialized cryptographic skill sets required by law enforcement or intelligence community teams at a time when Elon Musk’s Department of Government Efficiency (DOGE) is working to minimize government involvement and cut expenses. Recruiting and retaining talent are two more major obstacles. Government initiatives to prevent state-sponsored hackers have mainly failed, possibly because of these factors.
The sophistication of hackers is expected to expand rapidly with the development of artificial intelligence. AI “agents” are more effective at finding code flaws. Artificial intelligence (AI)-generated deepfake audio and video capabilities enable flawless imitation at cheap cost, making it easier for hackers to defraud unsuspecting victims. However, sophisticated AI tools and skills can function both ways. Neo-privateers could fight the assailants using the most advanced technologies since they were compensated and given authority by letters of marque and retaliation. Government organizations might concentrate on more urgent security issues by using the private sector to retaliate in the cryptocurrency arena.
With almost 300 lawmakers that support cryptocurrency, Congress has to take fast action. Proponents of cryptocurrency such as Congressman Tom Emmer (R-MN) and Senator Cynthia Lummis (R-WY) are in a good position to collaborate with crypto czar David Sacks and work across party lines to give priority to a neo-privateer initiative that would bring security back to the crypto sector. The cryptocurrency sector would rejoice.
The United States should embrace its past and implement a neo-privateer program now. A sophisticated way to safeguard American invention and national security is through letters of marque and retaliation.