- US authorities filed a civil complaint to forfeit 20.2 BTC seized by the FBI, now valued at over $2.4 million.
- The Bitcoin was traced to a Chaos ransomware group member and linked to criminal activity, including extortion and money laundering.
- If forfeiture is approved, the seized Bitcoin could become part of the proposed Strategic Bitcoin Reserve currently under federal consideration.
The United States government has moved to forfeit 20.2 BTC, worth over $2.4 million, seized by the FBI in April 2025. The cryptocurrency is linked to the Chaos ransomware group and could be added to the Strategic Bitcoin Reserve if the forfeiture is approved.
FBI Seizure Traces Funds to Ransomware Suspect
According to a civil complaint filed on July 24, 2025, in the Northern District of Texas, the 20.2891382 BTC was recovered from the wallet address bc1q5d8af0crjhlnepjq08muhh55899rf2ktye3sxd. The Dallas FBI office executed the seizure on April 15, when the Bitcoin was valued at approximately $1.7 million.
The funds are alleged to be tied to ransomware attacks and money laundering activities. Investigators linked the wallet to an individual identified as “Hors,” a known member of the Chaos ransomware group. This cybercrime organization has been associated with attacks on multiple victims, including those based in Texas.
Acting U.S. Attorney Nancy E. Larson confirmed that the digital assets are being pursued under civil forfeiture laws. The government asserts that the funds are either proceeds of illegal activity or were used to facilitate federal offenses involving damage to protected computers.
Bitcoin May Be Added to National Reserve
If the forfeiture request is granted, the seized Bitcoin may be transferred to the United States’ proposed Strategic Bitcoin Reserve. The reserve is being developed as a way to manage and store digital assets acquired through enforcement operations and related initiatives.
The forfeiture case, filed under Case No. 3:25-CV-01920-K, will now proceed through federal court. Authorities must demonstrate that the seized funds meet legal standards for permanent government possession.
This legal action marks part of a broader federal strategy to counter ransomware operations through asset recovery. It also points to an evolving role for cryptocurrency in national digital asset planning.
The court will decide whether the forfeiture can proceed. If approved, the 20.2 BTC will be placed under federal control and may be added to national holdings.
