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DOJ Files Civil Forfeiture of $2.3 Million in Bitcoin Linked to Chaos Ransomware

It highlights federal use of blockchain tracing with wallet recovery techniques to target ransomware-as-a-service networks

DOJ
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Overview

  • The Department of Justice filed a civil complaint on July 24 seeking forfeiture of 20.2891382 Bitcoin valued at about $2.3 million and tied to an alleged member of the Chaos ransomware group.
  • The FBI’s Dallas division seized the cryptocurrency on April 15, 2025, using a recovery seed phrase to access an Electrum wallet controlled by an individual known as “Hors.”
  • Federal prosecutors allege the funds represent proceeds of money laundering and extortion from ransomware attacks orchestrated by Chaos, which offers cross-platform malware since at least February.
  • The seized Bitcoin remains in a government-controlled Electrum wallet as civil litigation continues in the Northern District of Texas.
  • The action underscores growing interagency and public-private collaboration, including DOJ partnerships with the FBI and blockchain firms, to disrupt evolving ransomware-as-a-service operations.