In 2025, the crypto industry faces significant cybersecurity threats. The North Korean hacker group Lazarus is behind major digital asset thefts, posing national security risks for the US. Reviving the practice of privateering could be a potential solution.
Current Cybersecurity Threats in the Crypto Industry
At the start of 2025, the Lazarus hacking group stole $1.4 billion from Bybit, a major crypto exchange, marking one of the largest thefts in the industry's history. In 2024, hackers stole over $2 billion, with more than half attributed to Lazarus, which diverts stolen assets to various illicit activities. Such actions pose severe threats to US national security, especially as pariah states continue to sponsor these groups.
The History of Privateering in the US
Privateering was a governmental practice allowing private enterprises to attack enemy trade. It played a significant role in US history during the American Revolution. Despite its abolition in most European countries, the US did not sign the Paris Declaration of 1856, preserving the option to use privateers in the future.
Modern Privateers: A Solution for Cyber Threats
In the 21st century, the US could consider a modern privateer approach to combat cyber threats. This would allow American firms or individuals to conduct hacking activities against sanctioned entities, effectively countering threats. Such a strategy could be a valuable tool to complement government efforts in protecting the crypto industry from cyber-attacks.
The US should embrace its history and leverage privateering experiences to protect national security amidst modern cyber threats. This could offer an effective solution for tackling hacker attacks in the crypto industry.
