Ukraine transferred $8.3 million in USDT to a state-controlled wallet, marking the first seizure of crypto placed under official management. The stablecoin was seized from an alleged member of an international hacking group accused of ransomware attacks on victims in Europe and the U.S., with estimated damages topping $100 million. The milestone comes as Ukraine, ranked fourth in Europe by crypto transaction volume with $206.3 billion received between mid-2024 and mid-2025 according to Chainalysis, formalizes its approach to digital assets following the 2022 legalization of virtual assets and ongoing efforts to align regulation with EU standards.
Prosecutors Seize $11.1 Million in Assets from Alleged Hacking Group
The USDT came from wallets controlled by an alleged member of an international hacking group that launched cyberattacks on people and companies across Europe and the U.S., stole confidential data, demanded ransoms, and laundered proceeds in Ukraine by purchasing real estate, cars, and other high-value property, according to the State Bureau of Investigation. Four suspects, including the alleged organizer, have been detained and remain in custody. Prosecutors have seized more than $11.1 million in total assets, including homes, vehicles, $1 million in cash, and the cryptocurrency. Estimated damages from the group's activities top $100 million, the Prosecutor General's Office stated.
ARMA Assumes Control Following 2025 Agency Overhaul
ARMA, formally the National Agency for Finding, Tracing and Management of Assets, oversees property seized in criminal cases. The $8.3 million USDT transfer represents the agency's first handoff involving digital assets. ARMA underwent a 2025 overhaul aimed at making seized-asset management more transparent, a reform that unlocked hundreds of millions of euros in European Union support. The Prosecutor General's Office published the announcement on Telegram, stating this is the first case when seized crypto assets have actually been transferred to the management of the state.
Ukraine Advances Crypto Tax Bill After Legalizing Virtual Assets in 2022
Ukraine legalized virtual assets in 2022 and is advancing a bill to tax and regulate the market along EU lines as part of Kyiv's bid for European Union membership. Parliament passed the bill in a first reading last year. Public officials hold approximately $2.8 billion in Bitcoin, and local media reports last year indicated the country explored the possibility of setting up a strategic crypto reserve. The UK's Royal United Services Institute estimated last year that Ukraine could recover at least $10 billion in stolen funds and lost tax revenue by tightening crypto rules, warning that weak oversight has turned the country into a hub for laundering, including of Russian money. The Prosecutor General's Office stated that modern crime has long since moved into the digital space and authorities continue to work on the issue.
FAQ
What did Ukraine do with the seized cryptocurrency?
Ukraine transferred more than $8.3 million in USDT to a cryptocurrency wallet controlled by ARMA, the country's asset-recovery agency, marking the first time seized crypto has been placed under state management.
Why was the cryptocurrency seized?
The USDT was seized from an alleged member of an international hacking group accused of ransomware attacks on victims in Europe and the U.S., with estimated damages topping $100 million. Four suspects, including the alleged organizer, are in custody, and authorities seized more than $11.1 million in total assets.
How much crypto activity does Ukraine have?
Ukraine ranked fourth in Europe by crypto transaction volume, with $206.3 billion received between mid-2024 and mid-2025 according to Chainalysis, and public officials hold approximately $2.8 billion in Bitcoin.
