DOJ Seizes $7.1M in Bitcoin from ‘Chaos’ Group

The U.S. Department of Justice (DOJ) has initiated the process to seize $7.1 million in cryptocurrency from the ‘Chaos’ ransomware group. This action is a part of ongoing efforts to address ransomware-linked assets and disrupt illegal financial activities.

The DOJ’s move follows reports of the group’s involvement in crypto laundering schemes. Multiple law enforcement agencies, including the Homeland Security Investigations and international counterparts, are part of the coordinated operational efforts against ransomware criminals.

The DOJ’s seizure is part of a broader strategy to target illicit activities in the cryptocurrency market. No official statements from agency leaders have been released, making public reactions limited. Technical sources assess the impact is mostly limited to illicit funds.

The seizure of $7.1 million is relatively minor compared to the large-scale cryptocurrency market, similar to previous DOJ interventions. Analysts note little shift in market liquidity, with Bitcoin, Ethereum, USDT, and USDC unaffected by this isolated action.

The event parallels past actions like the Colonial Pipeline attack (2021), where the DOJ seized 63.7 BTC. Such actions are usually isolated to criminal funds, sparing broader market influences, and rely heavily on blockchain analytics for asset tracking.

Kanalcoin analysts suggest the impact remains limited to the legal and enforcement landscapes. Experts emphasize the DOJ’s continuous efforts to leverage blockchain tracking and international cooperation in curbing the spread of ransomware-linked activities.

“Talos assesses with moderate confidence that the new Chaos ransomware group is either a rebranding of the BlackSuit (Royal) ransomware or operated by some of its former members.” — Jon Munshaw, Security Researcher, Cisco Talos.