According to a report by Cryptopolitan on June 30, Ukraine's State Bureau of Investigation (SBI), the National Police of Ukraine, and U.S. authorities, following a joint investigation, have transferred over $8.3 million USDT seized from a suspected international cybercrime group to a state-managed wallet controlled by the Asset Recovery and Management Agency (ARMA). This marks the first time Ukraine has placed seized digital assets under state management.
Scope of the Seizure Operation and Detailed List of All Confiscated Assets
A joint investigation by the SBI, the National Police of Ukraine, and U.S. authorities confirmed that the suspected hacker group caused losses of over $100 million to victims through theft of confidential data, ransom demands, and money laundering via the purchase of real estate and vehicles within Ukraine. The full list of assets seized in this operation is as follows:
Cryptocurrency: $8.3 million USDT (transferred to ARMA)
Cash: Approximately $1 million
Residential and real estate: Seized, quantity undisclosed
Vehicles: Seized, quantity undisclosed
Total estimated value of seized assets: Over $11.1 million
Four suspects have been detained, one of whom has been identified as the organizer of the group.
Legal Status of ARMA: Held by Court Order, Not Final Owner
The Prosecutor General's Office of Ukraine explained that the seized USDT has been transferred to ARMA by court order, with ARMA holding it as a custodian, not as the owner. ARMA has managed seized real estate and vehicles for years, but has never before held cryptocurrency. This is the first such case. Only after the four suspects are convicted can the state permanently recover and freely dispose of these funds according to law. The four suspects have not yet been tried, and the trial timeline has not been disclosed.
Planned Use of Funds: Subject to Conviction, Conversion to Purchase Wartime Military Bonds
ARMA plans to convert the seized USDT into Ukrainian hryvnia (approximately 372 million hryvnia at current exchange rates) and then purchase Ukrainian government military bonds to be used for wartime defense and public expenditure. The above use is contingent upon conviction and court approval; the funds cannot be accessed at this stage. This approach is similar to the operation of the U.S. Strategic Cryptocurrency Reserve, whose funds similarly come from assets seized in criminal and civil cases.
Frequently Asked Questions
Can the Ukrainian government currently use the seized USDT?
It cannot be used at this stage. ARMA holds this batch of USDT as a custodian under a court order, and the funds must remain untouched until the conclusion of the case. Only after the four suspects are convicted can the state permanently recover the funds and use them as planned to purchase military bonds.
What is ARMA, and has it managed cryptocurrencies before?
ARMA is Ukraine's Asset Recovery and Management Agency, legally responsible for handling confiscated property related to criminal proceedings. ARMA has managed seized real estate and vehicles for years, but has never before held cryptocurrency. This is its first time holding seized digital assets.
What other recent public actions has Ukraine taken in cryptocurrency-related law enforcement?
According to a previous report by Cryptopolitan, Ukrainian President Volodymyr Zelenskyy signed a decree in July 2025 sanctioning 60 cryptocurrency entities and 73 individuals on grounds related to fund flows with Russia.
