Proposed US Marque and Reprisal Bill Could Authorize Private Seizure of Crypto, Possibly Add Bitcoin to National Reserve

• Authorizes neo-privateers to seize crypto and detain cybercriminals.

• Targets offenses including crypto theft, ransomware, pig-butchering scams, identity theft and malicious intrusion.

• Over $3 billion in crypto stolen in 2025 so far; $142 million lost in July alone, per public law-enforcement reports.

Scam Farms Marque and Reprisal Authorization Act of 2025 explained: how neo-privateers could seize crypto and feed a national Bitcoin reserve — read the key implications now.

Published: 2025-08-22
Updated: 2025-08-22

What is the Scam Farms Marque and Reprisal Authorization Act of 2025?

The Scam Farms Marque and Reprisal Authorization Act of 2025 is a congressional proposal that would permit the U.S. president to grant letters of marque to privately contracted, armed entities—termed “neo-privateers”—to disrupt and seize assets from cybercriminal groups engaged in large-scale crypto theft and related cyber offenses. The bill frames major crypto scams as threats to economic and national security.

How would neo-privateers be authorized and what powers would they have?

The bill authorizes the president to contract “privately armed and equipped persons” to “employ all means reasonably necessary” to seize property and detain or punish cybercriminals identified as threats by the executive branch. Listed targetable offenses include cryptocurrency theft, ransomware, pig-butchering scams, identity theft, unauthorized access to computers, password trafficking, and distribution of malicious code. The bill text states, “Criminal enterprises that employ cybercrimes and coerced labor present an unusual and extraordinary threat to the economic and national security of the United States.”

How could seized assets be used to build a national crypto reserve?

Seized stolen crypto could be forfeited through court proceedings and redirected into government-controlled reserves. A January executive order established a framework for a Bitcoin and crypto reserve that can accumulate assets via budget-neutral mechanisms or through asset forfeiture. Recent law-enforcement seizures cited in public court filings include more than 20 BTC (valued at over $2.3 million) seized by an FBI Dallas division operation and multi-million-dollar seizures tied to ransomware investigations.

Public enforcement activity in 2025 already shows routine crypto forfeiture in cybercrime cases. For example, DOJ filings in July documented seizures of $1 million and $2.8 million in crypto linked to separate ransomware actors, demonstrating a legal pathway for converting seized crypto into government-controlled holdings.

Why does the bill define cybercrime as an “act of war”?

Labeling large-scale cyber-enabled fraud and coerced-labor schemes as “acts of war” elevates their legal status, enabling extraordinary countermeasures under maritime-era letter-of-marque authorities. Proponents argue this legal framing allows rapid, flexible responses to transnational cybercriminal enterprises that evade traditional law enforcement. Critics warn it could blur lines between law enforcement, military action, and private force.

Frequently Asked Questions

Who introduced the bill and what is its legislative status?

Arizona Representative David Schweikert introduced the Scam Farms Marque and Reprisal Authorization Act of 2025 in August 2025. The bill remains under congressional consideration and is subject to committee review and amendment.

Can seized crypto legally fund a federal Bitcoin reserve?

Yes. Under current executive guidance, a federal Bitcoin reserve could accept crypto via budget-neutral means or asset forfeiture. Any transfer must comply with existing forfeiture laws and court processes adjudicating ownership and forfeiture rights.

Key Takeaways

• New enforcement model: The bill would create state-contracted neo-privateers authorized to seize digital assets.
• Broad target list: Offenses include crypto theft, ransomware, pig-butchering, identity theft and unauthorized access.
• Seizure to reserve: Forfeited crypto could feed a federal Bitcoin reserve established by executive order, subject to legal process.

Conclusion

The Scam Farms Marque and Reprisal Authorization Act of 2025 represents a significant shift in U.S. cybercrime policy by proposing neo-privateers and letters of marque to target large-scale crypto-enabled offenses. If enacted, the bill could accelerate asset seizure pathways and bolster a federal crypto reserve. Stakeholders should monitor congressional proceedings and related DOJ and FBI enforcement activity for practical impacts.

Related plain-text references: US Congress bill text; Department of Justice public filings; Federal Bureau of Investigation case reports; executive order establishing a crypto reserve (January 2025).